The final weeks of 2017 were important for a new player in the forex and CFDs market. The company ABC 123 Prime was granted a CySEC license with its goal being to become a boutique brokerage firm that is connecting professional traders to the market.
The company outlines on its website that it is offering FX, CFDs and metals pricing via FIX API. The firm is aiming at a platform agnostic offering which will provide it with the flexibility to deliver its solution to a multitude of clients.
The API of the company is said to be providing an easy to use interface for brokerages that wish to get direct access to liquidity from ABC 123 (CY). The firm states that it has multiple liquidity provider data streams, and brokers don’t need to modify their existing trading applications.
Aside from FIX, the offering supports a Java interface, secure messaging via HTTPS with firms able to integrate their own proprietary electronic trading systems.
CySEC Licensing Process is Getting Tougher
The Cyprus Securities and Exchange Commission (CySEC) has become much more diligent in recent quarters. The regulator is taking much longer than in previous years and is more rigorous when testing the suitability of firms to obtain an operating license in Cyprus.
After years of operation in a relatively loose regime, the watchdog has been getting its house in order in recent months. Pressure from ESMA regarding several companies that have been withholding withdrawal requests made by clients prompted the regulator to crack down hard on the binary options industry.
With a brisk shift in the approval process of new licensing applications, the CySEC is aiming to firm up its stance when compared to other European regulators.
Recently, ESMA published a communique outlining the concerns that national regulators have when retail forex and CFDs trading is mentioned. The supranational regulatory body has proposed a list of drastic measures that include a maximum cap on leverage for retail clients at 1:30.
While brokers are likely to aim to shift more clients to a professional investor class, the requirements will strip retail clients of many of the protections that regulators have set in place.