Some Seriously Regulated Forex and CFDs Brokers

CNMV Regulated Forex Brokers Rules

The “ National Securities Market Commission ” or the “ Comisión Nacional del Mercado de Valores ” (CNMV), an autonomous Spanish regulatory body created in 1988 by the securities market law, regulates and supervises the activities of all companies and organizations involved in the relevant securities market and financial operations in Spain. The authority is held responsible by the Ministry of Economy and Finance of Spain. In 2008, the CNMV declared that its laws and provisions should be unified with those of the finance ministers of the European Union (ECOFIN) to reinforce the efficiency of the supervision and to establish a transparent and competitive environment for all the investors of the market.

However, this realignment has not yet been achieved and will be applied in conjunction with a new regulatory framework for the CNMV concerning financial markets and instruments in accordance with the MiFID II directive and the MiFIR regulation from January 3, 2018. The CNMV is endeavoring a reformed and transparent Spanish securities market, which operates at fair prices, a safe and healthy market, free from illegal activity, and the security of investors’ assets and deposits. CNMV is empowered to conduct monthly surveys of all market participants, including Forex and CFD brokers, mutual fund dealers and providers, securities issuers, as well as participants in secondary securities markets concerning their risks, their financial situation, their liquidity. , compliance with the law, the capital stock and the net management value (for UCIs), the transaction registers and their overall operational state. In addition, thanks to prudential supervision, the CNMV keeps transactions and the solvency of the financial system safe.

Purpose and functions of the CNMV

The aim of the CNMV is to ensure stability and transparency of financial markets, protect investors and make sure that brokers and intermediaries behave correctly.

In exercising its powers the CNMV received a significant amount of information, much of which is contained in official records. This is considered public information.

Action by the CNMV as a supervisory body is mainly focused on:

• companies issuing securities to be placed publicly on the primary market
• participants in the secondary securities markets
• companies providing investment services and collective investment institutions

In addition, the CNMV exercises prudential supervision by seeking to ensure that the system is solvent and transactions are secure. The CNMV is also responsible for assigning the ISIN codes for all securities issued in Spain.