The Israeli Securities Authority (ISA) has issued its first fine on a binary options broker, investments service provider LeapRate cited on Wednesday an official statement by the regulator. The financial watchdog has fined NIS 500,000 (about $130,000) unregulated DGI Markets and its principal for providing financial services to local investors.
Gabriel Lavie, owner and CEO of the brokerage, received a fine of NIS 300,000, while DGI Markets itself has to pay NIS 200,000. In addition, Lavie was banned from holding any position in a regulated financial concern for a period of two years.
The broker handled about 450 transactions each month and generated an average monthly revenue of $2.5 million from Israeli clients between December 2014 and Februiary 2016, the media said, citing ISA data.
According to authorities, DGI Market was doing about $2.5 million a month in Revenues on about 450 client transaction per month with Israeli clients between December 2014 and February 2016.
Earlier this year, the Israeli regulator imposed a ban on trading in binary option instruments in the country. Just recently, the ISA announced it is to ban the advertising of binaries to retail clients abroad, which would put an end to major brokers will not be able to operate locally-based call centers.
DGI Market is a brand name of TSIE LP. The company claims to be based in the UK. It offers trading services in binary options on currency pairs, stocks, commodities and indices. The broker provides no information concerning regulation or authorization.
Earlier in 2016, the British Columbia Securities Commission (BCSC) issued a warning against the broker for soliciting local residents into trading in binary options without being authorized to do so.