Who Regulates the Market of Binary Options?
The market of binary options trading, as well as other activities of financial services, is a subject to mandatory regulation.
From such dispositions come virtually all developed countries, regulating the activities of binary options market by specific regulatory bodies.
Until recently, in the Russian Federation the regulation of the financial services in the market was made only by the Central Bank, virtually no restrictions in conducting financial transactions on the binary options, which created the opportunity to engage such companies in brokerage services that do not have any rights to do this. The only document to participate in this kind of activity was a license for the provision of betting services that has no relation to the stock trading. According to this principle the vast majority of brokerage firms worked and they do not bear any responsibility for their own activities.
At the same time, not so long ago in the Russian Federation specialized independent regulators were organized which are examining the activities of brokerage firms. Such controllers are:
TSROFR - this organization is not of a commercial type. It controls and holds appropriate oversight of the quality and level of services provided by brokers and dealing centers.
KROUFR - it is the Commission which regulates the relations of finance market participants.
It is under the supervision of these organizations all the brokers operating on the territory of the Russian Federation are.
Probably, many of you have noticed that the majority of brokerage firms located their headquarters in Cyprus and registered in this country? This thing is explained by the fact that Cyprus is a tax haven, providing the most favorable conditions for the operation of brokerage firms and other financial services operators. Since virtually there is no taxing on the income they receive. However, the quality of services there are more than closely monitored by the regulator CySEC - this is the Commission on Securities and Exchange of the Republic of Cyprus. This regulator is considered a fairly competent authority in all Western European countries, and brokerage firms registered and located in Cyprus are accepted in all the countries of Western Europe and the Russian Federation. Listed below there are all available at this time main regulators of financial markets in the world, which, inter alia, oversee and regulate the activities of brokers of binary options:
ASIC – Australian Securities Investment Commission - Australian Commission for Investment and Securities
CDCC – Canadian Derivatives Clearing Corporation - the Corporation of derivative of financial products.
BCSC – British Columbia Securities Commission - Commission on securities in British Columbia.
OSC - Ontario Securities Commission - Securities Commission of Ontario.
DanishFSA - Danish Financial Supervisory Authority - the Danish Financial Supervisory Authority
ESMA - European Securities Markets Authority - the organization of securities regulators of the European Union.
Bafin - Federal Financial Supervisory Authority – the Management of German financial authority
FSA - Financial Service Authority – financial authority management and regulation of the UK.
FSAJapan - Financial Services Agency of Japan - Japan's Financial Control Agency.
CySEC - Cyprus Securities Exchange Commission - Commission on Securities and Exchange Commission of Cyprus.
SwedishFSA - Financial Supervisory Authority - Commission for Financial Supervision in Sweden
SEC - Securities Exchange Commission - The Commission which regulates issues of the stock exchanges and securities
NFA - National Futures Association - National Organization of the futures market.
FINRA - Financial Industry Regulatory Authority –the regulator of the financial sector;
CFTC – Commodity Futures Trading Commission - Commission on term trading on the stock exchange.
FINMA - Financial Market Supervisory Authority – the service of finance market surveillance in Switzerland.
As a rule, the brokerage companies that operate in the Russian Federation are accredited in one of the above bodies. Always pay attention to this important point. At the same time, it is desirable that the brokerage company was adjustable by FMRRC or KROUFR - it will be an additional guarantee of the quality of services provided.