Cyprus Securities and Exchange Commission (CySEC) has awarded retail forex and CFD broker FXCM Group a new regulatory license. The Cyprus Investment Firm (CIF) comes just ahead of the expiry date set for the end of Brexit’s transition period.
CySEC granted the license to FXCM Group’s newly formed local subsidiary FXCM EU, on November 23, 2020. FXCM EU becomes the latest addition to the multiple existing locally translated FXCM platforms in Europe.
CIF will cover up to five domains of the local platforms, which are bespoke for individual European countries. FXCM Group currently runs its platforms with regulatory oversight from the EU’s financial watchdog, FCA.
FXCM Group, also known as Forex Capital Markets, a London-based broker with a pan European operation. The firm also offers its services in the European Union under its UK operating license.
The new CySEC license will enable FXCM Group to have the option to transfer its ownership from the FCA. In addition to the EU, the FXCM Group also has a license to operate in Australia and South Africa.
FXCM Group among Brokers Rushing For European Licenses
In similar FXCM news, multiple other brokers who are passporting their services under FCA licensing are rushing for licensing.
Brokers have expressed concerns about the uncertainty surrounding Brexit and how trading businesses will be affected by changing regulations. Furthermore, the Disagreements between leaders on both sides of Brexit may require access to the rest of Europe via individual licenses.
Earlier, GAIN Capital, another brokerage firm with operations in Europe, applied for a similar licensing from CySEC. GAIN is a subsidiary of Stonex, which operates two local trading platforms in the United Kingdom, Forex.com and City Index.
However, unlike FCXM or GAIN, London-based assets manager and social trading broker Darwinex is looking for a Spanish license. The firm previously went by the name Tradeslide is also under regulation of the FCA, passporting its services to the EU with the UK license.
CySEC licensing will allow FXCM Group to continue operating in Cyprus even after Brexit. CySEC is the independent public supervisory authority in Cyprus that oversees the investment service market and the securities market.
As a leading provider of FX and CDF trading, FXCM Group’s mission is to provide traders access to liquid markets. The firm was founded in 1999 and offers other trade-related services like innovative trading tools and trading education.
