The Cyprus Securities and Exchange Commission (CySEC) has been active as of late with a series of mandates and edicts policing against unregulated forex and binary options entities, including a recent regulatory push to curb market abuse (MAR).
In its most recent action, CySEC has issued new regulation on market abuse directive (MAD), which complements the existing MAR legislation. The new package is slated to be enacted in full force by July 3, 2016.
According to the directive, as stipulated by the official CySEC mandate, the following changes will be implemented:
Implementation of maximum harmonization provisions set out in the MAR; Exercise options or discretions explicitly foreseen in the Regulation; Implement upcoming binding technical standards and implementing acts of the European Commission; Amend or Repeal all national laws that cover matters now falling under MAR/MAD.
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Changes to the existing MAR infrastructure can be viewed in their entirety here.
In addition, the new MAR/MAD legislation package calls for the amendment of Cypriot national laws to comply with the new changes. This is hardly the first national directive taken by Cyprus in conjunction with regulatory action.
Throughout 2014 CySEC has made headlines with several amendments to its existing regulation, including the tightening of its reporting regime to comply with European standards, as well as numerous warnings on risky trading.
Market abuse has been a hot topic in 2014, whether in the CySec orbit of regulation or globally. Myriad regulators have warned against illicit practices and unauthorized activities in both the forex and binary options realm, which taken with a string of ongoing probes, has despoiled the financial industry as a whole.
CySec’s latest initiative represents a concrete attempt to help mitigate any abuse for investors, namely in regards to harmonization.