CySEC Head Demetra Kalogerou: We May Consider Banning Binary Options
Finance Magnates reports live from the annual industry event in Cyprus.
CySEC Head Demetra Kalogerou is now presenting her keynote speech to the trading industry at the iFX Expo International 2017.
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As we reported earlier today, recent efforts by CySEC to better exercise control over the industry should be supported as it is in the interest of brokers to sharpen the focus of CySEC and help it establish itself as a trustworthy regulator.
#CYSEC Head addressing what’s next in financial #reulation in #Cyprus pic.twitter.com/Cpq6XKVXpw
— Finance Magnates (@financemagnates) May 25, 2017
Here is a selection of takeaways from the CySEC head’s speech:
“It is our mission is to ensure high quality and transparent investments.”
“There will be a mechanism to scrutinize marketing and activate complex financial instruments.”
“Players in the industry will have to decide if they want to play by the rules.”
“We introduced a circular on bonuses. It is uncommon that a firm incentivizing traders to trade in high risk tools will do it honestly.”
“We have to separate between what is fair and honest and what is aggressive marketing.”
“CySEC will do product monitoring and product intervention. CySEC will introduce tougher rules on companies that provide complex investments.”
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“We lowered the leverage to 1:50. Those who want to raise leverage will have to make sure the client passes a test and is not trading with sums that exceed their funds.”
CYSEC Head declares the death of regulated #binaryoptions in its current form for retail clients #regulation #cysec pic.twitter.com/lQQjDL7Nfa
— Finance Magnates (@financemagnates) May 25, 2017
“We are considering banning binary options but we’re still consulting about it.”
“The problem: conflict of interest and non-transparent pricing policy. It will be more appropriate to suggest binary options only to professional traders.”
“The new supervisory plan will take measurements of on site checks to make sure of compliance.”
“MiFID II will try to decrease consumer complaints.”
“In the last year we imposed the largest set of fines on CIFs, $4 million. We will continue until there’s full compliance.”
“Fintech and Blockchain – we’re examining how to scrutinize and monitor these technologies and will introduce regulations with regard to that.”
“Robo-advice is also attracting attention. We’re analyzing it and will decide what to do.”
“We want to regulate crowdfunding by 2018.”
“We’re always open to discussion and to look into ways to make the industry run smoothly. But it will not be at the expense of supervision and enforcement.”
Professional traders would use Vanilla options, that are properly priced on an exchange or the payout is otherwise “guaranteed”.
Don’t consider banning them; just ban them.
These companies coupled with the unscrupulous FX firms are what dragged the CySec image down in the first place. Only drastic action will rebuild the battered and bruised reputation.
Bonuses are still offered, i was asked to switch brokers today; if i had i would have received not only a bonus, but also a ridiculously high leverage no competent trader would want, and to top it off i could become a preferred trader on the PAMM system….