As Nadex Broker warning was published, the derivatives exchange highlights that it has no relation to Daily Options. What is the next move from online brokerage?
Nadex Broker warning
Daily Options operates via www.dailyoptions.org and is noted to offer to enroll into binary trading platforms selected by its customers. Moreover, the Nadex mentions that Daily Options also offers to manage and trade on the clients behalf. Apparently, the online brokerage has been targeting Nadex members and asking them to provide their password and username to Franklin Cove, a trading supervisor. The Daily Options is reported to offer to trade the Nadex account on the member’s behalf.
Nadex is a well-known US derivatives exchange which is used by a big number of US traders in order to trade binary options. In the US, all binary options platforms are obliged to be traded on a regulated exchange, as the US regulator has prohibited OTC brokers operations across the country.
Nevertheless, a large number of US binary options investors appear to use the services of unauthorized brokers. Nadex made it clear to traders that it will not assume any responsibility for the transactions of these services. Additionally, the North American Derivatives Exchange stated that financial services companies “may require registration with either the Commodity Futures Trading Commission (CFTC) or the Securities and Exchange Commission (SEC).”
No affiliation with Daily Options
As Nadex Broker warning was issued, exchange has made it clear that it is not in any way connected with Daily Options or Franklin Dove. The derivatives exchange highlighted that its membership agreement states that members may not give control over their accounts to any person/entity. Moreover, they are not allowed to control the account of any other member. Nadex members are obliged to preserve the confidentiality of their account details.
Nadex regulatory framework also states that no individual trading member or entity have the right to trade on behalf of a person or entity. Therefore, any Nadex member is breaching the membership agreement by providing the access to their accounts to a third party.
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