CySEC Reiterates French Legislation to CIFs, Prohibiting CFDs, Binary Options

The Cyprus Securities and Exchange 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 issued an announcement to Cyprus Investment Firms (CIFs), warning against the provision of a litany of products including contracts for difference (CFDs), binary options, and foreign exchange (FX) within France, according to a CySEC circular.

The London Summit 2017 is coming, get involved!

[gptAdvertisement]

Last year, France’s financial regulatory watchdog Autorité des Marchés Financiers (AMF) introduced a ban on the online advertisement of Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term and binary options products in the country. The move was largely expected after Finance Magnates warned about the prospect in May 2016.

French law prohibits the offering of binary options contracts, whether directly or indirectly related to FX, and some CFDs where the leverage is greater than 1:20. As such, CySEC is reiterating the stipulations of French legislation that do not allow any offerings that do not comply with the AMF’s regulation.

This includes a refrain from addressing or soliciting clients via electronic means or marketing communications or providing investment services on financial derivatives that pertain to any of the aforementioned asset classes. Moreover, all of the following characteristics of offerings are prohibited by French law:

• The maximum risk is unknown at the time the contract is entered into
• The risk of loss is greater than the amount initially invested
• The risk of loss compared to the potential advantages is not reasonably understood with regard to the particular nature of derivative