The Cypriot FX industry appears to show no sign of contraction following the island nation’s banking crisis earlier this year, evidence of which was abound at this year’s Forex Magnates IFXEXPO in Limassol, where Chairman of Cypriot financial markets regulator CySEC Demetra Kalogirou confirmed to attendees that the regulator had 36 pending applications for licenses awaiting authorization at the time of the IFXEXPO.
Today, Cypriot law firm MAP S. Platis announced that four firms were granted a Cyprus Investment Firm (CIF) license by the regulator having instructed the law firm to act on their behalf in gaining regulation with CySEC.
These firms are:
• Prodigit Investments Ltd, which was granted CIF License Number 200/13
• Admiralex Ltd which was granted CIF License Number 201/13
• AVFX Trading Ltd which was granted CIF License Number 204/13
• FXGlobe Ltd which was granted CIF License Number 205/13
FXGlobe already operates in other jurisdictions, and is registered as a Financial Services Provider in New Zealand, but is not regulated in any jurisdiction, the receipt of a CySEC license therefore representing the firm’s foray into the retail market as a regulated firm.
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Admiralex belongs to Admiral Markets, a firm which has been furthering its presence overseas lately, having established an office in London and gained an FCA license in the UK earlier this month.
On the sustained recent growth of the retail sector in Cyprus, Dr. Stelios Platis, Managing Director of MAP S. Platis explained to Forex Magnates: “Cyprus has not only done well in attracting well-established FX brokers from around the world. What is more important is the tens of start-up FX brokers who thrive and grow from Cyprus to conquer the retail FX industry.”
Cyprus Continues To Attract Overseas FX Firms
Dr. Platis made an interesting point regarding the practicalities surrounding operating laws in Cyprus, which is of particular interest when bearing in mind that one of the companies which received its license today was AVFX a company whose Israel operation ATrade faces the effects of proposed stringent rulings scheduled for the Israeli market later this year.
“Whereas in other jurisdictions, FX brokers have to work around burdensome and restrictive rules on leverage, excessive capitalization or expensive operating requirements, which restrict growth and consume valuable human and monetary resources, Cyprus’s FX brokers enjoy a stable and reasonable regulatory regime coupled with low operating costs” stated Dr. Platis.
Speaking to Forex Magnates today on the granting of these four licenses by CySEC through the law firm, Dr. Platis concluded that he remains optimistic about the future of the industry in Cyprus. “The sector in Cyprus appears to still be growing strong and expect it to continue to do so at least in the short-term, judging from new applications and new requests in front of MAP S.Platis today. In the face of risk and uncertainty, markets and brokers undoubtedly reach out to quality and our firm has invested significantly in this direction over the years. This is why we manage to grow the sector even in the aftermath of this banking crisis” said Dr. Platis.
Low Entry Barriers & Access To Continental Market
Pambos Panayotou, Executive Director of Trading Point of Financial Instruments Ltd addressed the Regulation Panel at this year’s Forex Magnates IFXEXPO, during which he reinforced the attraction of the passport: “Cyprus still has attraction because of the passport. This is still a major reason for firms coming to Cyprus. There is also the advantage of being able to employ good and qualified staff which can be part of the management of the firms. “
This was further borne out by Tal Ron, Advocate at law firm Tal Ron, Drihem & Co who explained during the Regulation Panel: “The fees and set up costs which CySEC apply are competitively priced. It is considerably cheaper to gain regulation with Cyprus rather than other regulators which will allow access to Europe such as the FSA/FCA. I use that example because in the UK it is often 5 times the cost of obtaining a licence in Cyprus, and it achieves the same end. You get an FSA registration number with a CySEC license due to the EU passport. This has a tremendous value.”