CySEC Head Demetra Kalogerou: We May Consider Banning Binary Options
- Finance Magnates reports live from the annual industry event in Cyprus.

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 and control of the Cyprus Stock Exchange as well as transactions executed in the Stock Exchange, its listed companies, brokers and brokerage firms.Furthermore, the regulator also supervises and monitors Licensed Investment Services Companies, Collective Investment funds, investment consultants. and mutual fund management companies.CySEC’s Role in Combatting Market AbuseOne of CySEC’s most important functions is the granting of operation licenses to investment firms, including investment consultants, brokerage firms and brokers. This includes provisions for Cyprus Investment Firms (CIF), who provide and perform investment services and activities either within Cyprus or abroad on a professional basis on certain financial instruments.Finally, CySEC oversees the imposition of administrative sanctions and disciplinary penalties to brokers, brokerage firms, and investment consultants, among others. The group has been a key force in policing the forex and binary options space, which has included several legal actions and curb market abuse. Since 2016, CySEC has sought to take a more aggressive stance against illicit behavior, while also strengthening its handling of investor complaints against entities. CySEC is currently chaired by Demetra Kalogerou, who has held the role since 2011.The CySEC is administered by a seven-member Board, which consist of the Chairman and Vice-Chairman, each of whom provide their services on a full and exclusive employment basis, and five additional non-executive members.All individuals on CySEC’s Board are appointed by the Council of Ministers following a proposal of the Minister of Finance. Their service reflects a five-year term. 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 and control of the Cyprus Stock Exchange as well as transactions executed in the Stock Exchange, its listed companies, brokers and brokerage firms.Furthermore, the regulator also supervises and monitors Licensed Investment Services Companies, Collective Investment funds, investment consultants. and mutual fund management companies.CySEC’s Role in Combatting Market AbuseOne of CySEC’s most important functions is the granting of operation licenses to investment firms, including investment consultants, brokerage firms and brokers. This includes provisions for Cyprus Investment Firms (CIF), who provide and perform investment services and activities either within Cyprus or abroad on a professional basis on certain financial instruments.Finally, CySEC oversees the imposition of administrative sanctions and disciplinary penalties to brokers, brokerage firms, and investment consultants, among others. The group has been a key force in policing the forex and binary options space, which has included several legal actions and curb market abuse. Since 2016, CySEC has sought to take a more aggressive stance against illicit behavior, while also strengthening its handling of investor complaints against entities. CySEC is currently chaired by Demetra Kalogerou, who has held the role since 2011.The CySEC is administered by a seven-member Board, which consist of the Chairman and Vice-Chairman, each of whom provide their services on a full and exclusive employment basis, and five additional non-executive members.All individuals on CySEC’s Board are appointed by the Council of Ministers following a proposal of the Minister of Finance. Their service reflects a five-year term. Read this Term Head Demetra Kalogerou is now presenting her keynote speech to the trading industry at the iFX Expo International 2017.
The London Summit 2017 is coming, get involved!
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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."
"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."
"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."
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 and control of the Cyprus Stock Exchange as well as transactions executed in the Stock Exchange, its listed companies, brokers and brokerage firms.Furthermore, the regulator also supervises and monitors Licensed Investment Services Companies, Collective Investment funds, investment consultants. and mutual fund management companies.CySEC’s Role in Combatting Market AbuseOne of CySEC’s most important functions is the granting of operation licenses to investment firms, including investment consultants, brokerage firms and brokers. This includes provisions for Cyprus Investment Firms (CIF), who provide and perform investment services and activities either within Cyprus or abroad on a professional basis on certain financial instruments.Finally, CySEC oversees the imposition of administrative sanctions and disciplinary penalties to brokers, brokerage firms, and investment consultants, among others. The group has been a key force in policing the forex and binary options space, which has included several legal actions and curb market abuse. Since 2016, CySEC has sought to take a more aggressive stance against illicit behavior, while also strengthening its handling of investor complaints against entities. CySEC is currently chaired by Demetra Kalogerou, who has held the role since 2011.The CySEC is administered by a seven-member Board, which consist of the Chairman and Vice-Chairman, each of whom provide their services on a full and exclusive employment basis, and five additional non-executive members.All individuals on CySEC’s Board are appointed by the Council of Ministers following a proposal of the Minister of Finance. Their service reflects a five-year term. 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 and control of the Cyprus Stock Exchange as well as transactions executed in the Stock Exchange, its listed companies, brokers and brokerage firms.Furthermore, the regulator also supervises and monitors Licensed Investment Services Companies, Collective Investment funds, investment consultants. and mutual fund management companies.CySEC’s Role in Combatting Market AbuseOne of CySEC’s most important functions is the granting of operation licenses to investment firms, including investment consultants, brokerage firms and brokers. This includes provisions for Cyprus Investment Firms (CIF), who provide and perform investment services and activities either within Cyprus or abroad on a professional basis on certain financial instruments.Finally, CySEC oversees the imposition of administrative sanctions and disciplinary penalties to brokers, brokerage firms, and investment consultants, among others. The group has been a key force in policing the forex and binary options space, which has included several legal actions and curb market abuse. Since 2016, CySEC has sought to take a more aggressive stance against illicit behavior, while also strengthening its handling of investor complaints against entities. CySEC is currently chaired by Demetra Kalogerou, who has held the role since 2011.The CySEC is administered by a seven-member Board, which consist of the Chairman and Vice-Chairman, each of whom provide their services on a full and exclusive employment basis, and five additional non-executive members.All individuals on CySEC’s Board are appointed by the Council of Ministers following a proposal of the Minister of Finance. Their service reflects a five-year term. Read this Term Head Demetra Kalogerou is now presenting her keynote speech to the trading industry at the iFX Expo International 2017.
The London Summit 2017 is coming, get involved!
[gptAdvertisement]
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."
"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."
"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."