The Cyprus Securities and Exchange Commission (CySEC) announced this Tuesday that Cyprus Investment Firms (CIFs) are required to fill in a new form detailing their trading volumes for 2018. Retail brokerages regulated by CySEC are classified as CIFs.
The new form requires firms to report their trading volumes for the entirety of 2018. Volumes must be broken down into asset sub-classes, and CIFs must include all trading undertaken – whether it was with retail traders, professional traders or eligible counterparties.
Any margin trading must also be reported inclusive of the leveraged amount. For instance, if I traded $100 with 100:1 leverage, the reported amount would be $10,000.
Brokers will also have to distinguish between trades that were executed on behalf of their clients and any trading they did on their own account. Market makers, however, must report their activity within the client trading section and leave the other section blank to prevent double counting.
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No CySEC reminder
In a statement issued on its website this Tuesday, CySEC said that firms must submit the document by April 12. The regulator noted that it would provide no further reminders to CIFs, that no extensions would be given beyond this date and that failure to submit the requested information will result in fines.
Though this may be a new form, this is not the first time that CySEC has collected trading volume data from CIFs. In the past, data gathered by the regulator – including trading volumes – has been used to strengthen regulatory oversight.
On this occasion, the regulator did not clarify why it is seeking to collect trading volume data. It could be an effort, on the part of the regulator, to see how product intervention measures, which were introduced by the European Securities and Markets Authority last August, have affected an industry that plays a huge role in the Cypriot economy.
Finance Magnates reached out to CySEC representatives for comment on this article but, at the time of publication, no response was forthcoming.