Almost a year after Cyprus lifted restrictions on domestic deposits, capital control rules relating to international deposits in Cyprus will follow on April 6, signaling the end of the measures taken in March 2013 when Laiki Bank and Bank of Cyprus became insolvent resulting in a depositor bail-in
Read moreRepresents one of the largest fines ever doled out by CySEC to an individual. We've become somewhat used to the multi-million dollar fines for wrongdoing handed out by US regulator CFTC, so an EUR 100,000 ($135,000) fine doesn't seem too weighty. But it certainly is, when handed out by Cyprus financial regulator CySEC. CySEC announced…
Read moreAds and landing pages have been popping up with "We're not in Cyprus" type ads. Forex brokerages (at least some) had been known years ago, rightly or wrongly, for advertising which goes beyond 'aggressive' and borders on 'offensive'. Well it seems as if some of that type of advertising is back in vogue, following the…
Read moreCySEC details disclosure rules required to prove funds in segregated bank accounts in fact belong to individual investors. As we reported earlier, the Central Bank of Cyprus has agreed to NOT apply the dreaded 'haircut' to bank balances above €100,000 at Laiki Bank and Bank of Cyprus, for bank accounts where the ultimate beneficiaries are smaller…
Read moreCySEC allows FX brokers to release client names and data to banks, to allow for release of client funds. LeapRate Exclusive... We reported (exclusively) last week that segregated client fund bank accounts held by Cyprus FX brokers at Laiki Bank and Bank of Cyprus would NOT be subject to the "haircut" (or more correctly, confiscation)…
Read moreCentral Bank of Cyprus has agreed to not haircut segregated bank accounts over €100,000, where the ultimate beneficiaries are small individual investors. LeapRate Exclusive... LeapRate has learned that Cyprus' financial regulator CySEC is working on behalf of licensed Cyprus investment firms, which include many FX and Binary brokers, to prevent the dreaded "haircut" on bank accounts…
Read moreUnlike the original proposal, uninsured depositors will likely lose around 40% (not 10%) at Cyprus' two largest banks. The new (and seemingly final) Cyprus bailout agreed to Sunday night by senior Cyprus government officials, the EU and the IMF will see the complete wind-down of Laiki bank, the second largest bank in the country. The…
Read moreThe website home pages of several leading Cyprus FX and Binary brokers now lead with "Your Funds Are Safe" ads. As the Cyprus bailout fiasco heads into its fourth day -- and as Cyprus banks remain closed -- the Cyprus-based FX and Binary brokers caught in the middle of all this have been scrambling to reassure…
Read moreWall Street Journal quotes LeapRate research in its article on Cyprus FX brokers and the bailout. First of all, we'd like to say that we're very proud that the Wall Street Journal decided to base its article on the fallout for Cyprus FX brokers on research and comments made by LeapRate Managing Director Gerald Segal.…
Read moreSaxo Bank co-CEO's comments question whether the 10% confiscation of client funds at Cyprus banks will also apply to Cyprus FX brokerages. Before we start (or contribute to an existing) panic among clients of Cyprus-based FX brokerages, we would like to state at the outset that we have been told directly by senior management at…
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