CySEC Mandating Some CFDs and Binary Options Reporting by Cypriot Brokers

The Cyprus Securities and Exchange 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) is mandating a substantial effort for companies that are regulated on the island. Cyprus Investment Firms (CIFs) will have to supply additional information in relation to the upcoming implementation of MiFID II.

The changes are nothing unexpected and are merely full compliance by the Cypriot regulator with the new financial regulations.

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The EU-wide regulatory framework that is set to take effect in January 2018 is coming with a list of substantial new obligations for brokerages in the foreign exchange and CFDs trading industry. The regulator is outlining that firms will have to report transactions beyond instruments that are traded on multi-lateral trading facilities MTFs and organized trading facilities OTFs.

MiFID II is aiming to address systemic issues for the financial system that are giving information to the regulators about exposure in certain markets, especially in derivatives. The framework is adding substantial red tape for brokers around Europe, by mandating certain supervisory requirements that force brokers to keep a lot of data about their client's behavior.

Amongst the most traded instruments by retail clients, the CySEC is mandating reporting on CFDs, shares, bonds, ETFs, futures, interest rate, equity and FX derivatives and, last but not least, binary options.

The regulator highlights that companies have to provide volumes that include Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term information and transactions on CFDs that have been closed within the reporting period.

The requirements have the potential to create additional technological requirements for brokerages that haven't been prepared with their own reporting tools or haven’t contacted a third party that offers such services.

Transactions that are closed and reopened on the following day are exempt from the reporting requirements.

MiFID II has been designed with the institutional investor in mind and retail brokers could have fewer trades to report than expected.