Heather McLean
Heather McLean

Key issues with registration and licensing of Retail Forex brokerages

Global regulation of the financial services industry is a hot topic. Following recent developments and disasters in the economies of Europe and the US, the eyes of everyone, from those directly involved in the markets, to Joe Bloggs on the street, are focused on who oversees what, why and how. Heather McLean discovers why the foreign exchange brokerage market is subject to increasing scrutiny and new rules.

On what issues are creating pressure for changing the existing regulatory compliance requirements of forex brokerage firms within Europe, Asia and North America, Dr. Stelios Platis, founder and managing director of MAP S.Platis, an independent Cyprus-based centre of excellence in the support of financial institutions operating or wishing to operate in the EU, states: “I am sure that, especially in the aftermath of the recent financial crisis, the first thing on the minds of the regulatory authorities in developed economies is investor protection.“This, combined with the ease with which money and clients in the retail forex business can flow from one jurisdiction to another, has surfaced the need to narrow down this regulatory arbitrage gap in the global financial system,” continues Dr. Platis. Increasing volumes The forex over the counter market has increased its volumes dramatically in recent years. Many new players have entered the market, both companies and clients, and as barriers to...continued

Exclusive Content

The full article is only available to current subscribers. Click here to sign in or subscribe by clicking here