This week has been extremely active in terms of regulations all over the world. The most effective updates have been made in the EU region regarding ESMA and their restrictions on the financial markets. Let’s look at the most important news of this week.
Major Legal News
- 1 Major Legal News
- 2 Major market news
CySEC requests Trading Volume Data
The financial watchdog of Cyprus has requested every CIF located in the country to disclose their Trading Volume Data before April 12th. All of the Online Forex brokers listed here that fail to do so will face substantial fines.
SEC awards $50 to two whistleblowers
Two whistleblowers in the USA have been awarded $37m and $13m respectively. This practice has been becoming more and more common in the USA as the SEC has spent nearly $360 million on 61 individuals for supplying quality information about illegal activities within various companies.
Goldman Sachs fined £34 by the FCA
Goldman Sachs, one of the largest financial firms in the world has been fined £34 million by the FCA for failing to provide information about more than 220 million transactions between November 2007 and March 2017.
The FCA’s research showed that the company didn’t dedicate sufficient resources to facilitate this responsibility. Should it have been an honest mistake, the fine would have been much lower.
ESMA will renew CFD restrictions
ESMA has been maintaining the new regulations for over 8 months now. The whole ordeal was supposed to be a testing subject, to see how the market reacted to the new laws, and whether or not it would suffer damage. According to the proposal to renew the restrictions, we can say that the laws aren’t too damaging for EU-based financial firms.
The restrictions will remain the same. CFD products will have restrictions on leverage, marketing opportunities, and promotion opportunities, while Binary Options will remain banned.
French AMF wants ESMA to stay
The French Financial watchdog has expressed its desire to make ESMA regulation permanent in France. Even if ESMA were to abolish these restrictions in the near future (which they will not), France will still enforce bans on Binary Options and restrictions on leverage and marketing opportunities for CFD products.
Major market news
Deutschebank facing opposition about merger motion
Deutschebank and Commerzbank have been discussing a potential merger in the future, for quite some time now. Over the whole period of negotiations, severe opposition has been seen by investors and individuals directly involved with the company.
The merger will require a substantial amount of funds to facilitate. Funds that the bank does not have. The only way to make the merger happen would be to sell Deutschebank’s shares, something that the investors are opposed to. Qatari investors are the most prominent voices in the dispute as they refuse to pour in more funds in the bank, should they proceed with the merger.
Major currency news
EUR/USD on a new downwards trend
Due to unfavorable prospects for economic growth worldwide, central banks have been taking an extremely bearish position on the Euro. Especially after yields from German ten-year bonds fell even lower.
Judging by the current situation. There is an actual threat that the pair will continue falling and break the 1.1200 marks.
Due to even more serious uncertainties about Brexit, the GBP/USD pair is unable to remain stable. The only stability the pair was able to see was thanks to Friday’s “calm weather”. Throughout the week, the pair has been unable to form a strong upwards channel, falling straight down after a small struggle.
The lowest point seen within this week was today afternoon when the pair almost hit below the 1.3000 marks. Thankfully it was able to bounce back up, but no real upward trends will be formed until Brexit is firmly under control.