Plus500 (LON:PLUS), one of the major forex and CFD brokers regulated by the Cyprus Securities and Exchange Commission (CySEC), has said that the new, stricter, rules for forex and binary options brokers regulated by the Cyprus watchdog would not impact the company.
“The Company does not believe that the topics covered in the circular will have a material operational or financial impact on the Company”, Plus500 said in an official statement, noting “the movement in its share price and market speculation” following the publication of CySEC’s Q&A circular.
We remind you that on November 30 the CySEC issued a circular advising the forex and binary options brokers under its regulations to stop offering trading bonuses and set a maximum default leverage of 1:50. The watchdog gave the brokers until January 30, 2017 to start complying with the new requirements and said it will start reviewing them afterwards.
An SMN check showed that on December 1, Plus500’s stock dived 11.45% to GBX 530.
Plus500 offers trading in forex, options, contracts for difference (CFDs), commodities, indices, and exchange-traded funds (ETFs). It operates its own online trading platform for CFDs available in over 31 languages on desktop and Android, Windows and iOS mobile operating systems. According to Investment Trends report from July 2015, it is the second largest CFD provider in the UK.
Plus500 is licensed by three other regulators, besides FMA and Israel’s ISA – the Cyprus Securities and Exchange Commission (CySEC), UK’s Financial Conduct Authority (FCA), and the Australian Securities and Investments Commission (ASIC). Recently Plus500 also obtained forex licenses from the Israel Securities Authority and New Zealand’s FMA.
The broker operates in the European Economic Area (EU member states, plus Norway, Lichtenstein and Iceland), Gibraltar, Australia and certain other jurisdictions across Asia, the Middle East and elsewhere. Its subsidiaries include Plus500UK, Plus500AU, Plus500CY and Plus500IL.