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Regulation

The Company is regulated by the Cyprus Securities and Exchange Commission and is subject to the requirements of the EU's Markets in Financial Instruments Directive (MiFID II) and Markets in Financial Instruments Regulation (MiFIR).

As part of a push to harmonise the provision of financial services across the European Economic Area or EEA (the 28 Member States of the European Union plus Iceland, Norway and Liechtenstein), the European Commission adopted the Markets in Financial Instruments Directive (MiFID I), effective as of the 1st November 2007. In order to further strengthen transparency and improve the functioning of the internal market for financial instruments, one new Directive (MiFID II) and one new Regulation (MiFIR) have become effective as of the 3rd January 2018.

Both MiFID II and MiFIR aim at increasing competition and consumer protection in the provision of investment services and making financial markets more robust and transparent.

 
The Scope of MiFID II and MiFIR

MiFID II and MiFIR introduce new requirements on product governance and independent investment advice and improve requirements in several other areas, including on the responsibility of management bodies, inducements, information and reporting to clients, and best execution, leading to strengthened investor protection. New reporting requirements increase the amount of information available and will lead to greater transparency for all market participants. Stricter organisational requirements for investment firms and trading venues will lead to increased competition. Investment firms may use the MiFID II passport to provide services to European Economic Area states other than their home state.

MiFIR widens the scope of reportable financial instruments to cover those that are traded on Regulated Exchanges, Multilateral Trading Facilities and Organised Trading Facilities across the EEA. In addition, MiFIR captures Over the Counter transactions and transactions of EEA listed financial instruments that are executed on non-EEA trading venues.

MiFID II covers almost all tradable financial instruments including derivative contracts which may be settled physically or in cash and Emission allowances.

Key Topics
The main areas covered by MiFID II and MiFIR are:

  • Authorisation, regulation and passporting
  • Client categorisation
  • Client order handling
  • Organisational requirements
  • Governance
  • Pre-trade transparency
  • Post-trade transparency
  • Best execution
Regulated by the Cyprus Securities and Exchange Commission - License number: 061/05
Risk Warning: Trading in financial instruments may result in losses as well as profits. Past performance is no guarantee of future results. Trading in derivatives (e.g. options, futures, swap contracts) could result to the loss of the whole capital invested. Derivatives are bilateral contracts whose value depends upon the value of an underlying asset or index. Trading in leveraged financial instruments may result in losses greater than the initial invested capital. You should only invest in derivatives or leveraged financial instruments if you posses the necessary knowledge and experience to understand the risks involved, the investment meets your investment objectives and you are financially able to bear the investment risks.  For further information on risks inherent in investing, click here.