The upcoming CySEC April meeting has spurred a wave of speculation in the market. Yet, what are the CySEC April meeting discussion points?
29 March, AtoZForex –The Cyprus Securities and Exchange Commission (CySEC) has issued an invitation to all Forex and Binary Options firms under its supervision to attend a meeting in the beginning of April.
CySEC April meeting discussion points
The meeting will take place on the 4th of April at the Bank of Cyprus. CySEC has only invited the Forex and Binary Options firms’ executives. As the regulator never announces the agenda of such meetings, this sparked the speculations in the market from traders to the Forex brokers.
Lately, the regulator has been issuing a number of circulars in regards to the financial firms’ legislation norms. Hence, I am convinced that the meeting will be connected to the compliance matters. Some of the Forex and Binary Options firms may not fully understand the newest requirements of the regulator. Thus, the meeting will be of an educational nature. Such meetings were already held in the previous years – two in 2015, and four in 2016.
Going more in-depth, I believe that one of the touch points will be the STP business model of brokers. In practice, it seems that many STP brokers do not fully comply with the CySEC regulations. Or there are misunderstandings about the obligations and rules for STP brokers. Hence, CySEC could reiterate or introduce more clarifications upon the STP terminology.
Will the meeting affect the financial industry in Cyprus?
As per some online reports, the invitation to the meeting contained the following formulation of the topic of the discussion: “the latest and future developments of the forex and binary options industries in the European Union.”
The upcoming meeting has spurred speculation in the market. Some of the online reports stated that the CySEC will discuss a new batch of regulatory norms with the market participants. Others said that this meeting is just a part of the regulatory routine, pointing out CySEC’s regular educative seminars where the watchdog discusses the state of the industry with brokers. Moreover, some of the online reports speculated about the upcoming meeting being connected with IronFX withdrawal issues.
CySEC declined to comment on the meeting. Also, I have reached out to several compliance companies across Cyprus. However, it was no luck here either. A spokesperson for one of the firms stated ‘this is a sensitive topic, and I wish not to comment about it.’
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