According to an announcement made by the Cyprus Securities and Exchange Commission (CySEC), the parent company of Capital Option and SkyFX, two brokerages that have been under the intense scrutiny of regulator have been designated with a provisional liquidator.
The bankruptcy proceeding is the first step towards the recovery of client funds by customers of the brokerages that are owned by TRADEMARKER (CYPRUS) LTD. Larnaca based Andrea Andronikou has been appointed as provisional liquidator on the case.
Trading Places: Finding The Best Jurisdiction for Your BrokerageGo to article >>
The appointment of a liquidator precedes recovery of client funds one way or another. As the bankruptcy proceeding unfolds, the provisional liquidator which is appointed on the case has the authority to act in the interest of clients of the brokerages.
If the funds in the company’s coffers and client funds accounts are not sufficient for the compensation of clients of the brokerages, the provisional liquidator will work in concert with CySEC to tap into the Cyprus Investors Compensation Fund (ICF), which is guaranteeing deposits of up to €20,000.
The process is likely to take some time, with clients of SkyFX and Capital Option expecting a resolution of the case for over a half a year now since CySEC has suspended the license of TRADERMAKER (CYPRUS) LTD.