Seventieth session of Forex Training
Welcome back to Forex professional training in financial markets.
In this session we will talk about Option regulation.
Regulated financial market providers are guaranteed to hold the client’s fund in a trusted account with protocols to develop transparency, safety, equity in addition to diminishing trading abuse, fraud and manipulation.
Regulated financial market makers and providers have higher quality of services in comparison to non-regulated providers.
Some (Private or Governmental) regulatory organization are as follows:
SEC: Securities and Exchange Commission – USA
FINRA: Financial Industry Regulatory Authority – USA
CFTC: Commodity Futures Trading Commission – USA
NFA: National Futures Association – USA
CySEC: Cyprus Securities and Exchange Commission – Cyprus
MFSA: Malta Financial Services Authority – Malta
JFSA: Japan Financial Services Authority – Japan
FCA: Financial Conduct Authority – United Kingdom
BaFin: Federal Financial Supervisory Authority – Germany
CNMV: Comisión Nacional del Mercado de Valores – Spain
FMA: Financial Management Association – Australia
AFM: Autoriteit Financiële Markten (Authority for the Financial Markets) – Netherlands
FINMA: Swiss Financial Market Supervisory Authority – Switzerland
MAS: Monetary Authority of Singapore – Singapore
AMF: Autorité des Marchés Financiers – France
Option in Europe and Asia
Options as a newcomer of fiscal market can be regulated by JFSA, MFSA or CySEC (the first Europe MiFID-member that represents regulation for Option provider from 2012) in all countries except the USA.
Option in the USA
The USA has one of the strictest regulations which have specified expiration time, strike price, short selling rules, number of hedged positions, lot size, position holding limits, trading unit, leverage or margin limits are determined.
Entire Option trades are monitored by a couple of regulatory organisation such as SEC, FINRA, CFTC and NFA.
Halal and Islamic sentence (Fatwa)
Middle Eastern countries consider HALAL sentence from religious leaders as regulation.
Gambling and Lottery providers are regulated by the gambling regulators such as IAGR, while Option providers are regulated by investment and financial service organizations and government financial bureau.
That concludes this session, take care.