CySEC Reports 24 Brokers Incur Losses of $47.9 Million Following Swiss Tempest

The SNB fallout has reverberated throughout the FX industry, and following an earlier 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 call to CIFs, 24 firms were found to have experienced $47.9 million (€42.5 million) in losses.

Back on January 17, CySEC issued an order to all Cyprus Investment Firms (CIF) to ascertain the extent of any potential damages to their respective business. Of the 182 licensed CIFs contacted, 158 of the 182 experienced no negative on their capital adequacy.

However, the remaining 24 CIFs reported losses in client accounts or negative balances that totaled $47.9 million. Despite these losses, the affected CIFs still maintain the requisite equity and capital adequacy ratio above the minimum, as stipulated by CySEC law.

CySEC has not issued any additional statement as to how these losses will be recouped or what other measures will be taken at this time. Presently, CySEC has maintained that no CIFs are in danger of breaching the minimal capital adequacy thresholds.