We all know that nowadays binary options industry is facing a hard time following tighter regulations by various regulators. Is it due to these market changes that has forced EZTrader sport sponsorships termination?
16 March, AtoZForex – EZTrader, a binary options broker, brings an end to almost all the involved sports sponsorships. We all know that there is a prohibition on advertising of binary options products in most of the countries. Moreover, various regulators have tightened their binary options regulations. Therefore, it seems that the binary options industry change may have lead EZTrader to take this strategic decision.
EZTrader sport sponsorships termination impacts AS Roma deal
A binary options provider, EZTrader, brought an early end to its three-year sponsorship deal with the Italian Serie A club AS Roma that was done in September 2016. Because of this, the company logo was taken off from the football club website. This move by the company came after the Tottenham Hotspur deal cancellation. The brokerage has decided to halt all major sports sponsorships. However, it will continue sponsoring the women’s German national handball team and even a small sponsorship in Japan. EZTrader is a CySEC regulated firm and in order to focus on adherence to regulatory requirements, the company has taken this strategic move.
It is very common to use the football sponsorship in the binary options industry, especially for EZTrader. The company engages in several sponsorship deals with a wide range of European clubs. These include countries like Germany, Netherlands, France, United Kingdom, and Japan.
Which other sports sponsorship EZTrader terminated?
Tottenham Hotspur, British Premier League football club, has terminated the sponsorship deal with EZTrader. Just in early 2016, both the parties signed their two-year partnership. This termination was a year and a half earlier than its expiration date. It was about to end with the closing of the 2017-2018 football season. In accordance with the contract between EZTrader and Tottenham Hotspur, the club has taken off all the information of the binary options brokerage from its website.
Impact of binary options industry change on EZTrader
The binary options industry change may be one of the reasons that led to EZTrader sport sponsorships termination. In last November, the US financial watchdog SEC charged the brokerage with a fine of $1.7 million. This charge was for misleading investors into trading binary options online before January 2014.
EZTrader has also been actively pursuing expansion in France and announced a contract with Monaco last year. However, the parties agreed to pull back the agreement following the serious prospect of a ban on digital advertising of binary options and Forex in the country.
Think we missed something? Let us know in the comments section below.