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The Commission has received information that
a Filipino investor accessed and invested
money in
Blazing Traders
and
Trader.Online
. These
websites
have
links about
business/investment opportunities involving
forex,
binary options
and contract for differences
(CFDs)
.
Binary options and CFDs are financial products that give an investor exposure to price
movements in securities without actually owning the u
nderlying assets such as a currency,
commodity or stock.
Upon review,
Blazing Traders
is a binary options robot that promises, to make investors’
money
grow fast.
In an article published by The Straits Times which can be accessed at
https://www.straitstimes.com/business/companies
–
markets/eu
–
watchdog
–
clamps
–
down
–
on
–
binary
–
options
–
cfds
,t
he European Securities and Markets Auth
ority (ESMA) said
that
it was
prohibiting the marketing, distribution and sale of binary options to retail investors, while its
restrictions on CFDs would affect their marketing, sale and distribution.
This is in response to
the complexity and lack of transparency of binar
y options and CFDs that makes them a risky
undertaking for investors.
In another report from the Australian Broadcasting Corporation which can be accessed
at
http://www.abc.net.au/news/2018
–
03
–
10/binary
–
option
–
industry
–
a
–
scammer
–
takes
–
us
–
inside
–
the
–
job/9526606
,
featured a former employee of a binary options trading company
based in Israel. The said employee
was
a
party to defrauding people
of their hard
–
earned
money.
The employee also claimed to have targeted people from Australia as well as other
nations such as New Zealand, Singapore, Malaysia, America, and Canada. Hiding under a fake
name, he was able to convince them to invest.
Because o
f these instances, one should not take investing
in forex, binary options and
CFD’s
lightly.
In view of the foregoing, the public is hereby informed that
Blazing Traders
and
Trader.Online
are
NOT REGISTERED
with the Commission as a corporation or partnership
and
are
NOT AUTHORIZED
to solicit investments from the public, not having secured prior
registration and/or license to solicit investments as prescribed under Section 8 of the Securities
Regulation Code (
SRC).
Those who act as salesmen, brokers, dealers or agents of these unregistered investment
entities in selling or convincing people to invest in the these schemes being offered by them
including solicitations or recruitment through the internet may like
wise be prosecuted and held
criminally liable under Section 28 of the Securities Regulation Code and penalized with
maximum fine of Five Million Pesos (P5,000,000.00) or imprisonment of Twenty One (21) years
or both pursuant to Section 73 of the SRC.
Acco
rdingly, those who invite or recruit other people to join or invest in this venture or
offer investment contracts or securities to the public may be held criminally liable or
accordingly sanctioned or penalized in accordance with the Supreme Court decision
in the case
of SEC vs. Oudine Santos (G.R. No. 195542, March 19, 2014).
Should you have any information regarding the operation of the subject entities and
other similar schemes, please coordinate with the Enforcement and Investor Protection
Department a
t telephone numbers 818
–
6047 or email us at
epd@sec.gov.ph
.
For the guidance of the public