CySEC Lifts XTrade’s Suspension, Reinstates License

XTrade's partial suspension by the Cyprus Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Commission (CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision Read this Term) was rescinded today, ending a one-month action by the regulator. The lifting of the suspension coincides with XTrade’s compliance with CySEC regulations, following a violation of marketing relations last month.

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On May 30, 2017, XTrade’s license was partially suspended because the brokerage had violated regulations on disseminating marketing materials. Since then, XTrade has not been authorized to onboard any new clients – existing clients of the company remained unaffected, however.

At the time of the suspension, CySEC indicated that XTrade was unable to control the compliance of its teams with respect to marketing regulations. A previously released regulatory statement asserted that XTrade’s marketing material ‘does not seem to be fair, clear and not misleading. The company does not seem to have in place adequate policies and procedures sufficient to ensure its compliance with marketing material’.

The development had also closely mirrored the suspension of a number of XTrade’s employees - it parted ways with nearly sixty employees from its Israeli call center. CySEC’s policy in this regard has become increasingly stringent, as the regulator has imposed tougher restrictions on the use of call centers outside of the EU. On its part, XTrade had outsourced much of its European conversions and marketing operations out of Israel. However, the groundswell of pressure levied on Israeli call centers both on the international and local level to stop marketing abroad helps explain the timing of the firings.

Back to business

Fast-forwarding to the present, XTrade’s temporary suspension has been lifted as the group has fully satisfied the requisite CySEC laws. CySEC had given XTrade one month to rectify its practices and the aforementioned marketing violations, a feat that has now been achieved. Moving forward, XTrade will be allowed to on-board clients and fully offer its services unabated as an authorized Cyprus Investment Firm (CIF).

Finance Magnates reached out to XTrade, but the company was unavailable for additional comment.