CYSEC Issued CIF License To Stockpair And Crack Down On Imposter Sites

stockpair and pair tradingDespite the initial scepticism of the binary trading community about the value of a CIF license, many in the industry are now having second thoughts about being registered with the Cyprus Securities Exchange Commission (CYSEC). It seems that the recent tightening of regulatory oversight by CYSEC with erring CIFs have sort of boosted the image of CYSEC in the eyes of binary traders. Even as we speak, applications from interested parties for the application of a CYSEC’s licence are pouring into the island republic. The latest entity which was accorded a CIF licence by CYSEC was Nextrade Worldwide Ltd on 21st march 2014.

Stockpair and Pair Trading

For those who are in the dark, Nextrade Worldwide Ltd is the company which own and manage the binary trading platform Stockpair.com. Although Stockpair deals with binary options, they specialize in pair trading. Their platform is based on a pricing engine (U.S Patent Pending) which allow traders to trade with real time pricings.

Ever since the iOption bankruptcy saga, the image of CYSEC as a credible financial regulator had taken a huge hit. Many had wondered why a broker with such weak financial standing was able to obtain a CIF’s licence. While former clients and creditors of iOption are still sorting out the legal mess left behind in the wake of the bankruptcy of iOption, one silver lining in the cloud is the fact that since then, CYSEC decided to take a firmer stance with its enforcement duties as part of a drive to revamp its image.

Cysec Suspend Licensing for Some Brokers

Since the beginning of 2014, CYSEC have suspended the CIFs licenses of several companies for failing to comply with the conditions stipulated in their licenses. Even leading binary brokers such as Cedar Finance were not spared by CYSEC. For some investors, the hassles of being regulated by CYSEC might be more trouble than it is worth. But for traders, the firmer stance taken by the CYSEC is a sign that CYSEC can be counted on to look after their interests.

Apart from issuing a subtle warning to brokers about the illegal practice of attaching conditional withdrawals of traders’ funds to bonuses, CYSEC have also proactive measures to warn traders of imposter sites claiming to be regulated by CYSEC. Just recently on the 21st of March 2014, CYSEC informed traders that neither Optionsmarter nor Frontierforex are regulated by CYSEC as claimed by these websites. Although the Optionsmarter website is still accessible, frontierforex have appeared to suspend their activities. Although CYSEC might have got off from a shaky start in trying to regulating the binary trading industry, it is certainly try to clean up its act this year.

Leave a Reply