CySEC Chairwoman: ESMA CFD and Binary Options Rules Apply to Non-EU Clients
- Demetra Kalogerou announcement shows that firms will struggle to get around the upcoming product intervention measures
The Cyprus Securities and Exchange Commission (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 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 Read this Term) has announced that the upcoming product intervention measures on contracts-for-differences (CFDs) and binary options will be applied to clients outside of the European Union (EU). Demetra Kalogerou, Chairwoman of the Cypriot regulator, confirmed the news today in response to questions surrounding the issue from Cypriot firms.
The product intervention measures were announced in March by the European Securities and Markets Authority (ESMA). Aimed at protecting retail investors, they prohibit the sale of binary options and place severe restrictions on contracts-for-differences.
The new regulations, which were made possible by the Markets in Financial Instruments Regulation (MiFIR), will apply to binary options from the 2nd of July 2018 and to CFDs on the 1st of August 2018. The measures will only last for three months at which point ESMA will decide whether or not to renew them for another three months.
Hopes...deleted
While some companies have already started gearing up for the changes, others had hoped that they would only apply to clients within the EU’s jurisdiction. Unfortunately for this latter group, CySEC has confirmed that the ‘business as usual’ approach is not going to wash with ESMA.
In her statement today, Kalogerou stated: “ESMA...have confirmed that the application of the product intervention powers under Article 40 of MiFIR are not limited to clients who are based within the EEA. ESMA explained that the MiFID II/MiFIR regime does not discriminate on the basis of the location of clients, but rather it applies to services provided by investment firms which are authorized in the EEA.”
Kalogerou’s announcement will come as more bad news for an industry already in panic mode. ESMA’s new rules mean that many are not just rethinking their business strategy but are exiting the market altogether. For those remaining, this will send more alarm bells ringing as businesses struggle to adhere to the new Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term and remain operational.
The Cyprus Securities and Exchange Commission (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 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 Read this Term) has announced that the upcoming product intervention measures on contracts-for-differences (CFDs) and binary options will be applied to clients outside of the European Union (EU). Demetra Kalogerou, Chairwoman of the Cypriot regulator, confirmed the news today in response to questions surrounding the issue from Cypriot firms.
The product intervention measures were announced in March by the European Securities and Markets Authority (ESMA). Aimed at protecting retail investors, they prohibit the sale of binary options and place severe restrictions on contracts-for-differences.
The new regulations, which were made possible by the Markets in Financial Instruments Regulation (MiFIR), will apply to binary options from the 2nd of July 2018 and to CFDs on the 1st of August 2018. The measures will only last for three months at which point ESMA will decide whether or not to renew them for another three months.
Hopes...deleted
While some companies have already started gearing up for the changes, others had hoped that they would only apply to clients within the EU’s jurisdiction. Unfortunately for this latter group, CySEC has confirmed that the ‘business as usual’ approach is not going to wash with ESMA.
In her statement today, Kalogerou stated: “ESMA...have confirmed that the application of the product intervention powers under Article 40 of MiFIR are not limited to clients who are based within the EEA. ESMA explained that the MiFID II/MiFIR regime does not discriminate on the basis of the location of clients, but rather it applies to services provided by investment firms which are authorized in the EEA.”
Kalogerou’s announcement will come as more bad news for an industry already in panic mode. ESMA’s new rules mean that many are not just rethinking their business strategy but are exiting the market altogether. For those remaining, this will send more alarm bells ringing as businesses struggle to adhere to the new Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term and remain operational.