Cyprus Securities and Exchange Commission: Difference between revisions
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The '''Cyprus Securities and Exchange Commission''' ({{lang-gr|Επιτροπή Κεφαλαιαγοράς}}), better known as '''CySEC''', is the financial regulatory agency of the Republic of Cyprus. |
The '''Cyprus Securities and Exchange Commission''' ({{lang-gr|Επιτροπή Κεφαλαιαγοράς}}), better known as '''CySEC''', is the financial regulatory agency of the Republic of Cyprus. |
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Since Cyprus became a member of the [[European Union]] in 2004, CySEC has become part of European [[MiFID]] regulation, giving firms registered in Cyprus access to all European markets. This has led to a number of overseas firms registering in Cyprus to take advantage of this regulatory regime. |
Since Cyprus became a member of the [[European Union]] in 2004, CySEC has become part of European [[MiFID]] regulation, giving firms registered in Cyprus access to all European markets. This has led to a number of overseas firms registering in Cyprus to take advantage of this appealing regulatory regime. |
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Notably is the significant number of overseas [[Retail forex trading|retail forex brokers]] that have obtained registration from CySEC as they generally see this as an easy way to get a license without having to meet stringent requirements that would be imposed by other [[List of financial regulatory authorities by country|European financial regulators]], yet still qualify under MiFID and so completely free to operate in all European Union member countries. |
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==History== |
==History== |
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The members of Board are named by the Council of Ministers following a proposal of the Minister of Finance and their service is a five-year term. |
The members of Board are named by the Council of Ministers following a proposal of the Minister of Finance and their service is a five-year term. |
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==Modernization of Binary Options== |
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On May 3, 2012, the [[Cyprus Securities and Exchange Commission]] (CySEC) announced a policy change regarding the classification of binary options as financial instruments. The effect is that binary options platforms operating in Cyprus (where many of the platforms are based) will have to be CySEC regulated within six months of the date of the announcement. '''CySEC was the first EU [[MiFID]]-member regulator to treat binary options as financial instruments.'''<ref>{{Cite news|title= regarding the supervision of Binary Options|url= http://www.cysec.gov.cy/Downloads/English/Announcements/2012/EPEY/Announcement%20%2005.03.2012%20regarding%20the%20supervision%20of%20Binary%20Options.pdf|work= CySEC|date= 3 May 2012|accessdate= 4 June 2012}}</ref> On 7 January 2013, [[Banc De Binary]] became the first licensed binary option firm recognized as an investment firm by the Cyprus Securities and Exchange Commission (CySEC). |
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In 2013, [[Cyprus Securities and Exchange Commission]](CySEC) prevailed many times over the disreputable binary options brokers and communicated intensively with traders thereon in order to prevent the risks they incur through the use of unregulated financial services thereof. On September 19, 2013 [[Cyprus Securities and Exchange Commission]](CySEC) sent out a release warning investors against binary options broker TraderXP (www.traderxp.com), CySEC stated that TraderXP is not and has never been licensed by CySEC. <ref>{{cite web|url=http://www.cysec.gov.cy/Downloads/Investors/%CE%A0%CF%81%CE%BF%CE%B5%CE%B9%CE%B4%CE%BF%CF%80%CE%BF%CE%B9%CE%AE%CF%83%CE%B5%CE%B9%CF%82%20-%20%CE%95_%CE%9A_/2013_/19%20September%202013%20regarding%20warning%20TRADERXP%20LTD.pdf |title = Warning | accessdate = 27 March 2014}}</ref> |
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On October 18th, 2013 [[Cyprus Securities and Exchange Commission]](CySEC) sent out a release warning investors against binary options broker NRGbinary (www.nrgbinary.com), and its parent company NRG Capital (CY) Ltd. CySEC stated that NRGbinary is not and has never been licensed by CySEC.<ref>{{cite web|url=http://www.cysec.gov.cy/Downloads/Investors/%CE%A0%CF%81%CE%BF%CE%B5%CE%B9%CE%B4%CE%BF%CF%80%CE%BF%CE%B9%CE%AE%CF%83%CE%B5%CE%B9%CF%82%20-%20%CE%95_%CE%9A_/2013_/Warning%2010.18.2013%20re%20NRG%20Capital%20CY%20LTD.pdf |title = Warning | accessdate = 27 March 2014}}</ref> |
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The Cypriot regulator also temporarily suspended the license of the Cedar Finance (www.cedarfinance.com)on December 19, 2013. The decision was taken by [[Cyprus Securities and Exchange Commission]](CySEC) because the potential violations referenced appear to seriously endanger the interests of the company’s (Cedar Finance | www.cedarfinance.com) customers and the proper functioning of capital markets, as described in the official issued press release. |
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[[Cyprus Securities and Exchange Commission]](CySEC) also issued a warning against binary option broker PlanetOption (www.planetoption.com) at the end of the year and another warning against binary option broker LBinary (www.lbinary.com) on January 10, 2014, pointing out that Live Binary Ltd (LBinary) is not regulated by the Commission and the Commission has not received any notification by any of its counterparts in other European countries to the effect of this firm being a regulated provider. |
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As far as penalties are concerned, the Cyprus regulator imposed a penalty of € 15,000 against ZoomTrader (www.zoomtrader.com). OptionBravo (www.optionsbravo.com) and ChargeXP (www.chargexp.com) have also been financially penalized. [[Cyprus Securities and Exchange Commission]](CySEC) has also indicated that it has voted to reject the ShortOption license application. <ref>{{cite web|url=http://www.bonusbinaryoptions.net/the-projects-of-the-cysec-regulator-in-terms-of-binary-options-in-2014 |title = The projects of the CySEC regulator in terms of binary options in 2014 | accessdate = 27 March 2014}}</ref> |
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==See also== |
==See also== |
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Revision as of 23:03, 1 April 2014
| Επιτροπή Κεφαλαιαγοράς | |
 | |
| Agency overview | |
|---|---|
| Formed | 2001 |
| Jurisdiction | Republic of Cyprus |
| Headquarters | Nicosia, Cyprus |
| Employees | 42 (2009) [1] |
| Agency executive |
|
| Website | cysec |
The Cyprus Securities and Exchange Commission (Greek: Επιτροπή Κεφαλαιαγοράς), better known as CySEC, is the financial regulatory agency of the Republic of Cyprus.
Since Cyprus became a member of the European Union in 2004, CySEC has become part of European MiFID regulation, giving firms registered in Cyprus access to all European markets. This has led to a number of overseas firms registering in Cyprus to take advantage of this appealing regulatory regime.
History
CySEC was launched in 2001 as part of section 5 of the Cyprus Securities and Exchange Commission (Establishment and Responsibilities) Law of 2001 as a public corporate body.
Cyprus joining the EU in 2004 and adopting the Euro in 2008 significantly changed the financial regulatory framework that CySEC policed for what had been previously been considered a tax haven.
Responsibilities
The Cyprus Securities and Exchange Commission has the following responsibilities:[2]
- To supervise and control the operation of the Cyprus Stock Exchange and the transactions carried out in the Stock Exchange, its listed companies, brokers and brokerage firms.
- To supervise and control Licensed Investment Services Companies, Collective Investment Schemes, investment consultants and mutual fund management companies.
- To grant operation licences to investment firms, including investment consultants, brokerage firms and brokers.
- To impose administrative sanctions and disciplinary penalties to brokers, brokerage firms, investment consultants as well as to in any other legal or natural person whom fall under the provisions of the Stock Market legislation.
Structure
CySEC is administrated by a five member Board which is composed of the Chairman, the Vice-Chairman that are employed full-time plus three other members. In addition of the Governor of the Central Bank of Cyprus is represented by a non voting board member.
The members of Board are named by the Council of Ministers following a proposal of the Minister of Finance and their service is a five-year term.
Modernization of Binary Options
On May 3, 2012, the Cyprus Securities and Exchange Commission (CySEC) announced a policy change regarding the classification of binary options as financial instruments. The effect is that binary options platforms operating in Cyprus (where many of the platforms are based) will have to be CySEC regulated within six months of the date of the announcement. CySEC was the first EU MiFID-member regulator to treat binary options as financial instruments.[3] On 7 January 2013, Banc De Binary became the first licensed binary option firm recognized as an investment firm by the Cyprus Securities and Exchange Commission (CySEC).
In 2013, Cyprus Securities and Exchange Commission(CySEC) prevailed many times over the disreputable binary options brokers and communicated intensively with traders thereon in order to prevent the risks they incur through the use of unregulated financial services thereof. On September 19, 2013 Cyprus Securities and Exchange Commission(CySEC) sent out a release warning investors against binary options broker TraderXP (www.traderxp.com), CySEC stated that TraderXP is not and has never been licensed by CySEC. [4] On October 18th, 2013 Cyprus Securities and Exchange Commission(CySEC) sent out a release warning investors against binary options broker NRGbinary (www.nrgbinary.com), and its parent company NRG Capital (CY) Ltd. CySEC stated that NRGbinary is not and has never been licensed by CySEC.[5]
The Cypriot regulator also temporarily suspended the license of the Cedar Finance (www.cedarfinance.com)on December 19, 2013. The decision was taken by Cyprus Securities and Exchange Commission(CySEC) because the potential violations referenced appear to seriously endanger the interests of the company’s (Cedar Finance | www.cedarfinance.com) customers and the proper functioning of capital markets, as described in the official issued press release.
Cyprus Securities and Exchange Commission(CySEC) also issued a warning against binary option broker PlanetOption (www.planetoption.com) at the end of the year and another warning against binary option broker LBinary (www.lbinary.com) on January 10, 2014, pointing out that Live Binary Ltd (LBinary) is not regulated by the Commission and the Commission has not received any notification by any of its counterparts in other European countries to the effect of this firm being a regulated provider.
As far as penalties are concerned, the Cyprus regulator imposed a penalty of € 15,000 against ZoomTrader (www.zoomtrader.com). OptionBravo (www.optionsbravo.com) and ChargeXP (www.chargexp.com) have also been financially penalized. Cyprus Securities and Exchange Commission(CySEC) has also indicated that it has voted to reject the ShortOption license application. [6]
See also
References
- ^ "Annual Report 09" (PDF). CySEC. December 31, 2009. p. 26.
- ^ "CySEC Responsibilities". CySEC. Retrieved March 16, 2011.
- ^ "regarding the supervision of Binary Options" (PDF). CySEC. 3 May 2012. Retrieved 4 June 2012.
- ^ "Warning" (PDF). Retrieved 27 March 2014.
- ^ "Warning" (PDF). Retrieved 27 March 2014.
- ^ "The projects of the CySEC regulator in terms of binary options in 2014". Retrieved 27 March 2014.