Leading online trading brokers and platform providers are gathered in Cyprus to discuss the process of the European Brokers Association formation. Which advantages will the new union bring to the industry?
5 September, AtoZForex – Some of the top regulated online trading and platform firms from Retail Forex and Binary Options industries in Europe are apparently considering to build a new industry union. The association is about to be focused on setting the standards for the market and interests of the industry players.
European Brokers Association
The union is also will be aimed at restructuring the sector by shifting the deposits and volumes to regulated and registered brokers. The only invitation gathering is taking place in Cyprus this morning, as the process of union formation is discussed during the meeting. As it appears, the alliance is about to be called the European Brokers Association (EUBOA). As much as 50 platform providers and brokers have been invited to the gathering.
The matter was commented by the Head of Legal of SpotOption Exchange, one of meeting organizers. Bjorn Krog has stated:
“We hope that with the establishment of EUBOA, the online trading industry will mature and pave the way for brokers who want to run credible and reputable operations. Cooperation between all the parties involved is the key to redefining the industry reputation, giving it the fair chance it deserves and taking the action items necessary to protect the interests of traders and brokers around the globe.”
The key reason for the association formation is a large increase in unlicensed brokers’ activity over the last year’s period, with the Binary Options sector taking the biggest hit. The union is aimed to help regulators and investors to spot the illegal activity in the industry.
Cyprus gathering agenda
Additionally, today’s meeting in Cyprus will cover the issue about the regulated brokers’ operations via unlicensed subsidiaries. This particular practice has been noticed across the industry, as a number of regulated brokers serve the EU-based traders via its regulated EU subsidiary, where they shift investors from everywhere else to its unregulated subsidiary overseas.
One more topic on today’s gathering agenda is platform providers, who are supporting unlicensed brokers using their services. Currently, a large number of Binary Options brokers are operating without any license or permission by the regulator. However, platform providers are losing a big chunk of profit, when not dealing with unlicensed brokers.
Other themes for discussion include practices in brokers’ call centers and in marketing channels, the education matter across the sector, the rules and standards in the Forex industry and the collaboration advancement between brokers, platform providers, regulators, and other market participants.
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