U.K. spread better and online trader IG Group announced on Monday that it will cease offering a suite of its binary options products to new clients with immediate effect.
The decision follows the intensification of regulator scrutiny of many electronic trading products in recent months, with the U.K.'s Financial Conduct Authority (FCA) confirming last December that it was considering extending its oversight to include, among other products, binary options which are currently only regulated by the Gambling Commission.
Following the FCA's late 2016 announcement, the shares of industry players fell precipitously with IG Group shedding £1.2 billion ($1.5 billion) of its market value.
The products at the center of Monday's announcement comprise IG Group's "Sprints" offering which had enabled customers to place highly leveraged bets on the direction of market moves over periods as short as one minute. The business had generated annual revenues of around £15 million for the company.