24 June, AtoZForex – Today the news about Brexit shocked the markets and caused a real chaos in the financial world. After the voting decided the destiny of the UK, other European countries also declared an intention to have EU referendums starting so-called “Domino Effect”.
While the world is still under the hectic effect caused by the UK EU referendum results, some regulators started already taking care of the consequences Brexit brought to the foreign exchange markets. Earlier today the Cyprus Security and Exchange Commission has issued an official note addressing all the regulated financial firms in Cyprus. The watchdog asked all regulated brokers to report post-Brexit situation to CySEC including the effect of trading activities which took place after the Brexit voting.
Brokers to report post-Brexit situation to CySEC: Details
The Cyprus Securities and Exchange Commission is the independent public authority with supervisory power. The watchdog is responsible for controlling and supervising the investment services market in Cyprus. According to the statement on the regulator’s website, its mission is to safeguard the investor protection and ensure the healthy environment of the securities market.
According to the note, all CIF regulated firms are asked to report the post-Brexit effect on their trading activities as well as the size of their assets and their capital adequacy ratio to the Cypriot regulator by the end of the day. The reason for such decision is that the watchdog is intending to find out if any regulated brokers out there have the problem of negative “client balances”. This kind of issue happened to several brokerage firms right after Swiss Franc spike previous year.
The note, signed by the Chairman of Cyprus Securities and Exchange Commission states:
“In addition, CIFs must calculate their own funds and capital adequacy ratio and inform CySEC accordingly. No need to submit the CRD returns, only the two figures above.”
The brokers are kindly requested to send their post-Brexit reports by close of business today to the email email@example.com. For more information please visit the website of the regulator.
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