CySEC Guides Brokers to do Due Diligence When Selecting Liquidity Providers
Posted: Wed Jun 29, 2016 7:04 am
CySEC has just published its fifth consultation paper for the year when it comes to regulating the activities of Cyprus Investment Firms. The Cypriot watchdog has turned its sight towards liquidity providers (LPs) and more specifically towards the ways which brokers use to conduct their due diligence. The news comes right after brokers regulated in Cyprus were guided to stop using high-pressure sales tactics and give investment advice to their clients.
According to the CySEC brokers should be less reliant on a single liquidity provider and should exercise “due skill, care and diligence”, when selecting every counterparty. The consultation paper issued ... (read more)