Cyprus Watchdog Suspends EZTrader Financial License over Three Alleged Violations of the Law

The Cyprus Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Commission (CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision Read this Term) has just announced that the authorisation of the Cyprus Investment Firm, ‘WGM Services Ltd’, number 203/13, has been suspended pursuant to the country's Investment Services and Activities and Regulated Markets Law.

The Cypriot regulator's only explanation was that the actions were due to suspicions of alleged violations of the following three sections of the law:

1. Operational requirements – Clients’ funds, Safeguarding of clients’ funds.

2. Own Funds- on the capital adequacy of investment firms.

3. CIFs large exposures- on large exposures.

No specifics of the alleged violations were given other than the sections they apply to. However, CySEC said that the decision for suspension was reached after taking into serious consideration the above mentioned alleged violations which may possibly endanger the interests of the clients of WGM Services Ltd and the operation of the capital market.

The binary options broker, EZTrader, which was launched in 2008, is the main brand of WGM Services Ltd. EZTrader, Inc. also owns and operates GlobalOption.com, EZInvest.com, as well as 888binary.com, a brand developed specifically for the Chinese market.

The commission gave EZTrader (WGM Services Ltd) fifteen days to take actions in order to comply with the law.

It is also noted that while the suspension of the authorisation is in force, WGM Services Ltd:

• Cannot provide/perform any investment services/activities, pursuant to the Law.
• Must close all open positions in relation to clients’ contracts, if a client so wishes, and return to them all their funds and profits earned – a practice which is not considered to be a violation of the provisions of the Law.