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Regulation

Regulation
Business as Usual: ESMA Renews CFD Leverage Limits
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In accordance with its press release from late March, ESMA, the European Securities and Markets Authority, is extending its restriction on the sale, marketing, and distribution of Contracts for Differences, or CFDs, to retail clients. The ban comes back into effect from 1 May 2019 until the end of July 2019. ESMA has determined that […]

Regulation
The UK Made ESMA’s Ban Permanent: Would the EU Do the Same?
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Along with Bitcoin’s fall from grace in 2018, the other bad-luck story of the previous year must surely have been the fate of the beleaguered binary option. Once the remit of the savvy OTC trader, this financial instrument was abused by scammers to the point where British authorities have proposed a blanket ban. And despite […]

Regulation
Reclassifying Your Traders as “Pros” – How Can You Do It Right?
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Since last August, regulated brokerages in Europe are no longer able to offer their clients high-risk leverage on CFDs, with restrictions ranging from 30:1 maximum for major Forex pairs, to no more than 2:1 for cryptocurrencies. But ESMA did leave one major opening in its regulatory structure. These CFD restrictions only apply to “retail traders”, […]

Regulation
The FX Global Code – Is Self-Regulation the Future of the Industry?
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On May 25, 2017, a coalition of central banks and prominent FX market participants launched an initiative that was to become known as the FX Global Code. Along with representatives from 16 jurisdictions, and led by the deputy governor of the Reserve Bank of Australia, this enterprise set out to tidy up the FX market. […]

Regulation
TRADING PLACES: FINDING THE BEST JURISDICTION FOR YOUR BROKERAGE
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Establishing a new forex business brings with it a long series of critical decisions and risky choices. Each decision you make affects both the initial amount of capital needed to begin operations, as well as the type of clients that you will attract. One of the major things every broker has to consider is where […]

Regulation
BRACE YOURSELVES: HOW TO PREPARE FOR THE NEW REGULATORY LANDSCAPE
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2018 saw a great commotion among the financial and trading spheres, with the introduction of MiFID II early in the year, on January 3rd. While MiFID II only relates to the EU, it had a wide-ranging impact on a significant number of international investment firms.ESMA (European Securities and Markets Authority), the EU regulatory body that […]

Regulation
ESMA RENEWS ITS BINARY OPTIONS BAN – WHAT’S NEXT?
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Investors who buy binary options probably know very little about calls or puts, or Black-Scholes valuations, but still, they swarm to brokers offering these questionable assets. Now, following the example of countries like Israel, the European Securities and Markets Authority, ESMA, have decided to apply the brakes. Binary options have received a bad press for the […]

Regulation
DIRTY LAUNDRY LIST: WILL GROWING FINES STOP MONEY LAUNDERING IN EUROPE?
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The rising number of money laundering cases involving European banks, such as Danske Bank and ING Group pushed the European Union to tighten its rules to combat these illegal transactions.Brussels, for example, cites that there is a need for greater cross-border coordination to monitor suspects of terrorism and prevent such cases from happening again. EUROPE […]

Regulation
MIFID 2.1 – HOW WILL BREXIT CHANGE THE RULES?
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Brexit, the official withdrawal of the United Kingdom from the European Union, kicked off on March 29, 2017, with two years set to “B-Day” on March 29, 2019. Over 50% of the British public voted to leave the EU in a referendum with a turnout exceeding 72%. But could this move affect the financial markets […]

Regulation
IS THERE AN INCENTIVE TO BE AN UNLICENSED BROKER?
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Forex trading is one of the most lucrative businesses a person can engage in if they have the technical know-how, and there are thousands of brokerages taking a piece of the pie. Despite the massive amounts of money that pass through the Forex market, and despite regulatory bodies monitoring the entire industry, unlicensed brokerage firms […]

Regulation
PARADISE LOST—NO MORE FINANCIAL HAVENS?
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For many years, the Isles of Man, Jersey, and Guernsey were popular holiday destinations for Brits looking a bit of sand and sunshine without traveling too far afield from the UK. Those territories were also popular locations for the deposit of offshore funds, which many people kept hidden, out of the watchful eye of the […]

Regulation
LEVERAGE YOURSELF: HOW WILL THE NEW ESMA REGULATIONS AFFECT BROKERS
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MiFID, GDPR, and now ESMA… You might be forgiven for thinking that there’s been an outbreak of Abbreviation fever in the European financial markets. The fact is, if you’re a serious trader or broker, you’d better get in line with the new regulations—and fast! ESMA, or the European Securities and Markets Authority, is the financial […]

Regulation
IN PREPARATION FOR GDPR – HOW MUCH OF OUR DATA IS HELD BY GLOBAL COMPANIES?
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Increasingly referred to as “digital gold”, the reality of our cyber age is that data harvesting is an extremely profitable industry. “Thousands of companies are in the business of harvesting your data and tracking your online behavior,” says Frederike Kaltheuner of Privacy International, a data lobby group. “It’s a global business, and not just online, […]

Regulation
THE SEC IS HUNTING DOWN CRYPTO: WHAT ARE THEY AFTER?
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Reports quickly spread that the SEC offices in New York, Boston, and San Francisco had begun issuing “scores of subpoenas”, with many cryptocurrency companies reportedly receiving one. This move comes on the back of recent reports that the SEC was focused on gathering information about the crypto industry. These moves have understandably created waves within […]

Regulation
ADAPTING TO A NEW ENVIRONMENT: HOW SHOULD BROKERS RESPOND TO THE NEW REGULATIONS?
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The new ESMA regulations could change the industry as we know it, but how should brokers react to them? Read these useful guidelines to keep up with the trade shifts. In March, the European Securities and Markets Authority (ESMA) took measures to protect retail investors. These new regulations aim to make the industry a safer place for traders. […]

Regulation
IN AN AGE OF REGULATION—WHAT KIND OF BROKER ARE TRADERS LOOKING FOR?
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Love them or hate them, brokers are a necessary evil without which traders cannot survive. By their very nature, by being in touch with all the other traders in the market, they have useful information from which you could benefit. But what are the features that make a great broker? It’s 7 o’clock on a […]

Regulation
COULD MiFID II AND GDPR BE IN CONFLICT WITH ONE ANOTHER?
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The European Markets in Financial Instruments Directive (MiFID) and the General Data Protection Regulation (GDPR) are two initiatives designed to bring European markets into alignment. But, could the two initiatives be pulling in different directions? MiFID – or in its latest form – MiFID II, is a European directive that is intended to harmonize the […]

Regulation
REDEFINING YOUR AFFILIATES UNDER MiFID 2
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MiFID, or the Markets in Financial Instruments Directive, has presented European financial institutions with a vast array of challenges. One of these is the relationship with and definition of Introducing Brokers, or IBs. The real question is whether all member company affiliates must be classified as IBs. Financial trading companies have been working with IBs for […]

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