The financial regulator CySEC
Considering that binary options are one of the youngest in the world of financial instruments, the investor there are concerns about the integrity of brokers binary options. Some brokers binary options expressed about having a license CySEC. We will tell you more about that.
CySEC (Cyprus Securities and Exchange Commission – which means “The Cyprus Commission for the Securities and Exchange Commission”) – an organization whose function is to control the activities of stock exchange (OTC) broker, registered in Cyprus, as well as licenses to brokers and investment finance companies. If a simple language, the Russian Federal Financial Markets Service is abolished analogue CySEC.
What is the significance CySEC?
Let’s start with the fact that Cyprus is CySEC regulator. Since December 1999, Cyprus has been a member of the European Union. Thus, CySEC, in accordance with the legislation of the European Union, has all the rights to oversee in the field in the financial sector, that is a legitimate example of the control of FSA (Financial Management Regulation and Supervision).
In addition to having at CySEC for the implementation of the rights of inspection and enforcement activities, CySEC is responsible to the laws of Europe’s failure to perform its obligations, which can not indicate the seriousness of education.
We now turn to the most basic activities CySEC:
- exercise control over the activities of investment companies are licensed CySEC;
- exercise control over the activities of the stock exchange and no stock brokers, dealing centers;
- issuance of licenses to conduct investment activities;
- control of financial transactions on the Stock Exchange of Cyprus;
- control over the activities of (compliance with trade regulations), the Cyprus Stock Exchange;
- control of issuers located in Cyprus (Rules of issue of securities and their further accommodation);
- control over the activities of portfolio managers operating in the territory of Cyprus;
- control over investment projects, licensed CySEC;
- implementation of inspections to lodge complaints, collection of materials on the violations, as well as the transfer of materials for further proceedings in state supervisory bodies;
- withdrawal of the license, in cases of violation of the requirements of regulations, as well as violations of the law.
Thus, when choosing a broker binary options, an important selection criterion may be the existence of a license from the CySEC. This broker is obviously interested in long-term cooperation with investors and does not set himself the goals in any way to deceive the trader and kidnap him money, because then, CySEC, being a mandatory body just starts to process the termination of activity of the broker.
I hope this article will inspire you even more confidence in the market binary options! Good luck!