CySec Makes an Announcement ……
For those curious, Cypriot financial regulator CySec wants you to know that they are “closely monitoring” the financial situation in
For those curious, Cypriot financial regulator CySec wants you to know that they are “closely monitoring” the financial situation in Cyprus and made an announcement to let everyone know this. You can see the entire post below, but other then letting us that they aware there is a problem going on in Cyprus, they aren’t saying much. Apparently, after receiving numerous emails an phone calls, CySec felt that they had to make some sort of formal response.
While it can be appreciated that the regulator is providing communication, knowing that the fate of the country’s forex industry is hanging in the balance, a more proactive stance that could be used to comfort client worries may have been more appropriate.
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Should they have said more, or at this point is there really not much they can do and they are spectators as well? Let us know what you think in the comments
We would like to inform all the interested parties, that the Cyprus Securities and Exchange Commission (‘the Commission’) is closely monitoring the developments regarding the efforts for easing the financial crisis and how the potential decisions are affecting the market and the supervised entities.
The Commission highlights that the interested parties will be informed in case there is any new and final development. The Commission remains at the disposal of the supervised entities, in order to respond/assist them with any questions/problems that may arise.
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I think there is nothing more to say, since noone knows yet what will happen in the next days.
@Andy. You are correct. As much as people want to rant and joke about the worst case scenario, it’s more of a wait and see what happens AND how the regulator and investors react.
I’m sure FxMagn will issue a press release when the banks open, if it isn’t already on cnn.
BTW, any news on the android app?
@Andy how about explaining how they calculate cap requirements and their view on whether firms have ample liquidity.
another thing – would be interested in what they say about all these brokers keeping funds abroad and if they are included in capital reports how they enforce monitoring.
eToro is claiming in their blog that all their client deposits are outside Cyprus. Is that possible?
What about Safecap group? There are many brokers under the Safecap umbrella…
Pretty pointless statement from Cysec if you ask me. Normally regulators say a lot without saying anything, this was a case of saying not a lot and stating the bleeding obvious.
Maybe its the voice of concern. A few months ago a source explained that CySEC had 60 applications pending for licenses for new companies. It is now 36…. go figure…
i wouldn’t trust any broker statement at this point.
Have you read lqdmarkets statement? http://www.lqdmarkets.com/blog/why-you-should-not-worry-about-the-cyprus-bailout/ They now claim it’s safer than ever to have deposits with them. They also say that no one can take part of your funds since this is margin of Forex and CFD operations… Bullshit. Of course they can. In fact, CFD and Forex trading is typically done by speculators. Typically it’s money you don’t need to live on. On the other hand, they are going to take money from savers which may need that money to eat in the future. So, can they take money from savers but not from speculators? Come one. It’s… Read more »
Will probably be 10 by the time the banks reopen. I am no way as bearish as some of you journos seem to be, mostly because it is very acceptable and common for hedge funds and companies to set up offshore and have a bank account else where, but would be brokers will obviously adopt a wait and see approach before looking at Cysec again.
John – Caveat Emptor….
It seems most brokers CySEC brokers keep “the majority” in other financial centres. That’s not unusual, but it does highlight the fact that some of these CySEC regulated brokers are simply using the regulation as an umbrella, with primary operations taking place elsewhere.
Regarding LQD Markets statement; complete rubbish, if individual savers were to be included in a levy, why would client funds held with a broker be exempt?
Most of these brokers would rather make good any potential loss incurred and announce all is well rather than suffer a “broker run” from an exodus of client funds.
Instead of returning to the Cypriot Pound, like many are advocating why not try this…
http://www.wired.co.uk/news/archive/2013-03/20/bitcoin-spain-currency-run
Come on MetaQuotes add it to MT4 !
“if individual savers were to be included in a levy, why would client funds held with a broker be exempt?” – agree
They are trying to say funds that are being used as trading margin against open positions are exempt…..but unless they have a legal opinion or have spoken directly with the EU, this statement is worthless. Also it doesn’t answer the the other part of the equation i.e. what about client deposits (sitting with a bank in segregated accounts) that are not being used for trading margin? Are they “exempt” as well? Hyperbole and spin unless they can substantiate their claims with factual evidence. If a UK regulated broker made these type of statements about client money on their website without… Read more »
I would like to refer to the statement that LQ markets put on their website http://www.lqdmarkets.com/blog/why-you-should-not-worry-about-the-cyprus-bailout/
From reading it, I can say it is an absolute unprofessional statement I have ever seen. Even CySEC has announced 2-3 days before that firms should not execute any order if that order might be affected by the decision of the EU levy / tax.
Not even the layman can believe that