CMA grants license to second online FX dealer
The Capital Markets Authority (CMA) has permitted the SCFM Limited to operate as the country’s second non-dealing Forex exchange (FX) broker having fulfilled the prescribed online FX trading regulations.
The green light grants the new licensee scope to legally act as an intermediary between clients and the online foreign exchange market in return for a commission.
SCFM becomes the second firm to capture the online forex trading charter in an year’s time following the 2018 grant of a similar license to EGM Securities.
SCFM Limited is a subsidiary of Cyprus-based SM Capital Markets Limited, a cross border investment services provider primarily licensed by the Cyprus Securities and Exchange Commission.
The acquired non-dealing license does not however allow brokers to offer any client advice but instead limits their roles to the execution of trades on the online FX platform.
The grant of consent to the second non-dealing FX trade facilitator points to the growing interest in emerging financial services tools from a return on investment attraction.
FX trading is for instance defined largely as the speculation of one currency’s value against another.
The capital markets regulator has however on previous occasions warned of the rise on unregulated products in the market urging financial providers to play a greater role in the mitigation of potential fraud.
The CMA has since laid down the building blocks for the adoption of emerging technologies in finance through the creation of a sand box defined as a regulated testing space for new products.
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