The Comisión Nacional del Mercado de Valores (CNMV), the Spanish regulatory authority, has released two warning statements against Wing Pegasus S.L. and D. Ricardo Cáscales Monge, online trading and financial advisory services firms. The warnings were made to alert the public that these companies are not registered to offer services to local clients.
TrustedBrokerz: The Source More Traders Are TrustingGo to article >>
According to the announcements made by the regulator, Mr. Monge and Wing Pegasus S.L. are affiliated, though the CNMV did not specify the nature of the business relationship between them. The CNMV states that the two have not been authorized to operate an online trading service, nor offer financial advisory services, under Article 140 of the Securities Markets Law in Spain.
Two weeks ago, the Spanish financial watchdog added two more companies to its blacklist, Binary Options Robot and Alpha Group. These firms offer forex and CFD online trading environments. The CNMV has advised clients against trading with either of the firms, as they were also found to be in violation of Article 140.
In addition, the Spanish regulatory authority has released a statement informing Cyprus-based forex and CFDs online trading companies that they will be subject to the requirements and rules instilled in Spain. Furthermore, any company that offers a margin greater than 10:1 is obligated to inform clients of the risks involved. Brokers are further required to inform traders of estimated costs if they are to close a position immediately after execution, and require written or verbal consent stating that the clients are aware of any complexities or risks.