LeapRate's Daily Forex Industry Newsletter
Join now to receive first access to our EXCLUSIVE reports and updates.
Screenshot of a breaking news alert e-mail from Q2 2017
Cyprus continues to hold its ground as a prominent destination for the establishment of new retail FX companies, with CySec having today issued a report detailing that it has granted 22 CIF licenses between May and October this year.
The list comprises a cross section of two types of entity, those which are newly established companies, accompanied by longstanding FX industry stalwarts which have sought CySec regulation in order to form operations in Cyprus from which to access new markets.
Among the latter category are publicly listed Israeli retail FX company Plus500 which obtained a CySec license in October which it now holds alongside its FCA license, and social trading network Myfxbook which gained CySec oversight earlier this month at a time when social trading networks are exploring the opportunities of becoming brokers in their own right, as well as offering end to end brokerage solutions.
Indeed, the proliferation of retail FX companies in Cyprus account for a significant proportion of the entire business ecosystem on the island, therefore the authorities have a keen interest in ensuring that they encourage new and existing companies from other regions to set up operations in Cyprus. On this basis, both Plus500 and Myfxbook have set up Cypriot companies in order to operate from Cyprus.
Whilst Australia’s regulatory authority has begun to show recalcitrance in offering licenses to FX companies and has warned the investing public several times to maintain caution with regard to certain retail FX trading activities, CySec has been keen to progress applications with minimal bureaucracy.
Indeed, LeapRate recently reported that Australia, another very popular region for retail FX firms due to its strong economy and proximity to the Asia Pacific region, has been issuing AFS licenses to many other companies in other sectors, but shown reluctance in progressing AFS license applications from FX companies of late.
Of the 22 CIF licenses which CySec has issued between May and October this year, not all are FX companies, a dynamic which LeapRate highlighted in August this year. Between the beginning of the year and August, some 26 firms had received licenses, a period during which an increase in non-FX companies had been apparent, and a downturn in applications from FX firms.
With regard to the licenses that have been granted between May and October this year, the full list is as follows:
1. VPR SAFE FINANCIAL GROUP LTD
2. 1 FINANCIAL ROD LTD
3. CENTRALSPOT TRADING LTD
4. MONEYCHOICE BROKERS LTD
5. GBE SAFEPAY TRANSACTIONS LTD
6. AMFF LTD
7. GOLDENBURG GROUP LIMITED
8. P.M. INVESTMENT CAPITAL LIMITED
9. AAA TRADE LTD
10. LEON MFO INVESTMENTS LTD
11. R CAPITAL SOLUTIONS LTD
12. INVESTLAB HOLDINGS LTD
13. HOLIWAY INVESTMENTS LIMITED
14. CAPITAL INDEX (CYPRUS) LIMITED
15. PLUS500CY LIMITED
16. SKANESTAS INVESTMENTS LTD
17. LUCRO CAPITAL LTD
18. PERFORMANCE RONNARU COMPANY LTD
19. TRILT LTD
20. MYFXBOOK LTD
21. TRADING POINT ASSET MANAGEMENT LIMITED
22. GLISTENTREE HOLDINGS LIMITED
For the official announcement from CySec, click here.
Latest research from Andrew Saks-McLeod (see all)
- FINRA Fines Goldman Sachs Execution & Clearing, L.P. $1.8 Million for OATS and trade reporting failures - July 27, 2015
- Full details of Malta’s new binary options regulation - July 27, 2015
- CMC Markets takes to the high seas at the Americas Cup – Live coverage from Portsmouth, UK - July 27, 2015
- One Financial Markets expands UAE operations with senior appointments and new offices - July 27, 2015