US-based fintech Match-Trade Technologies said on Monday it plans to launch a new service that would enable broker clients to be compliant with the newest regulations and guidelines of the European Securities and Markets Authority (ESMA) and the Markets in Financial Instruments Directive (MIFID II).
The new service is based on Match-Trade’s proprietary matching engine technology. The fintech offers clients customized solutions that would best meet their needs for comlying with requirements described in the MIFID II documentation and guidelines published by ESMA.
“We encourage all interested brokers, who are currently analyzing the MIFID II regulations, to contact us to evaluate best possible compliant solutions to meet regulatory and market standards,” Match-Trade noted.
California-headquartered Match-Trade Technologies is a technology provider for retail and institutional forex brokers and liquidity providers. Its offering includes Match-Trade System, Match-Trade Liquidity Cloud, Match-Trader Platform, Match-Trade MT4 Bridge, and Hosting Services, among others. The company has already partnered with major players on financial markets, such as FXCM, Saxo Bank, Hotspot, LMAX Exchange, Currenex, ADS Securities, X Open Hub and others.
ESMA, the EU mega-regulator, published guidelines and requirements for the derivatives markets in late October last year. They will apply from 3 January, 2018, for the relevant regulators that fall under the EU Markets in MiFID, as well as financial market participants under their supervision.
The ESMA, an independent EU regulatory body, issued in Q4 last year a set of guidelines for the forex, binary options, and contracts for difference (CFDs) markets, asking the relevant country regulators to tighten control over providers of such instruments. The ESMA tapped several topics, but margin requirements and bonus practices were the most widely-discussed ones.
Shortly after, Cyprus’ CySEC and UK’s FCA introduced new requirements, including a ban on bonuses as a measure to attract clients and the introduction of lower default leverage cap (50:1, of 20:1 for less experienced traders) for forex, binary options, and CFDs.
Several EU brokers, mostly those that fall under the supervision of the CySEC, have announced changes in the trading conditions they offer as a result of the regulatory changes. Some of them include FXTM, Alfa-Forex, Markets.com, Exness, HotForex. VinciCM, Invest.com, and ActivTrades. Several binary options brokers – 24Option, anyoption, OptionRally and OptionBit shut down their call centers in Israel who served English-speaking customers, or cut their staff to meet the latest Cyprus regulations.