CySEC Gives Brokers More Time to Report Annual Volumes Due to Covid-19

The Cyprus Securities and Exchange Commission, better known as 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, on Monday announced that it would extend the deadlines for most regulatory reporting obligations for registered brokers by at least one month.

Brokers regulated by CySEC must usually file their reports by March 31, April 30, and June 30. Taking into consideration the worldwide COVID-19 pandemic, the regulator has now extended these deadlines by at least one month.

“The Cyprus Securities and Exchange Commission ('the CySEC') wishes with the present, which is issued pursuant to paragraph 5(6) of CySEC`s Directive on charges and annual fees of persons that fall within the scope of the Investment Services and Activities and Regulated Markets Law of 2017 (DI87-03), to inform all CIFs, that due to the developments related to the Coronavirus disease 2019 (COVID-19) the deadlines for the submission to CySEC of the 1) Form 87-03-01 – Annual Fees Calculation Form including the Annex which are: 1) the extract from the audited financial statement with the total turnover of the corresponding year and 2) evidence of the annual fees payment to the Commission. In this respect, the Form 87-03-01, together with the Annex, should be submitted to CySEC by the end of July 2020 at the latest,” CySEC said in a statement.

New rules

In 2018, CySEC requested all Cyprus Investment Firms (CIFs) to report their trading volume for all classes of instruments. It announced in March 2019 that CIFs had to fill a new form that gives details of their entire 2018 trading volume.

They were required to break down volumes into asset sub-classes and include all trading undertaken, including those with retail traders, professional traders, and eligible counterparties.

Additionally, the form asks the firms to report on margin trading, including the leveraged amounts.

The brokerage firms are also expected to differentiate between trades that their clients executed on their own accord from those the brokers carried out on their behalf.

However, this space on the form is expected to be left blank by the Market Makers Market Makers Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Read this Term in order to avoid double counting. Instead, market makers should report their activities within the client trading section instead.

CySEC said in a statement released on its website back then that there will not be reminders for brokers on this new directive.

At the time, April 12 was given as the deadline for the brokers to submit these requirements. It added that no extensions beyond the deadline date will be given and failures to submit will result in fines.