CySEC will check the software of Forex brokers

Cypriot financial supervision, CySEC, has announced technological audits for selected Forex brokers. The purpose of the control is to check the manner and correctness of the operation of the transaction systems used.

No clear guidelines

Conducting this audit enables changes introduced in MiFID II European regulations. However, there is a problem. Nobody has specified specific criteria and guidelines for this type of control. It is therefore difficult to determine what their exact scope and effectiveness in detecting possible violations will be.

A representative of one of the Cypriot brokers comments:

"CySEC does not know how to evaluate our technologies, and there is also a lack of standards for brokers to follow."

Due to the fact that supervisory authorities may not have sufficient knowledge and software to perform the scope of work for the needs of the audit, they will use the services provided by external companies.

According to brokers, the information provided by EU legislators is too general to allow investment firms to independently implement technologies that will comply with them in 100%. This creates the risk that even brokers who want to act reliably will be able to meet with certain consequences.