Market Data Compliance: a New Headache for CFD Firms? Address: 48 Rue Le Royer Ouest Montreal, Quebec, H2Y 1W7. Name (required) Email (required) Phone (required) Message. There is a risk of loss in trading futures, forex and options. Futures, forex and options trading are not appropriate for .

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Legal: HotForex is a registered brand name of HF Markets Europe Ltd a Cypriot Investment Firm (CIF) under number HE Regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number /HotForex is governed by the Markets of Financial Instruments Directive (MiFID) of the European Union.

Many industry firms have failed this test and have been audited as a result. Market data should be treated as an asset but is often perceived as just a cost. The client organisation often thinks that it can do whatever it wills with the data, instead of the rights granted in the licence. Thirdly, onward redistribution, in most cases, on an unlicensed basis, to API clients for example, builds immediate liabilities that increase over time.

Finally, companies do not seek help from market data experts until after they have been informed that something is wrong. The single most effective way I have helped clients discover and mitigate market data licensing or usage issues is to conduct an internal audit, and therefore knowing where problems lie provide transparency for decision makers to take on board recommendations and minimise business disruption and financial liabilities.

The exchange will always cease supply of data until and unless they are satisfied by the data governance post-audit, as well as any liabilities found having been settled in full. The knock-on effect is to all B2B API clients of the firm who in turn are audited, and liabilities imposed — this has a material and substantial financial and relationship effect between all parties and can result in loss of business.

Market data audits are a reality and will not go away. Not only is the licensing important, but also how API agreements address market data between different businesses and how websites are worded when it comes to derived data. These factors are often underestimated to the detriment of the client organisation. The industry standard for retrospective market data audits is 36 months, though 5 years is fast becoming the new benchmark, meaning a greater liability over a longer period.

For example, the Cypriot regulator is actively engaged with the likes of Deutsche Börse and CME in stressing the need to its members of being properly licensed as a condition of being granted a licence to operate.

To put some context around my statement, I have tested so-called derived data from over 20 firms within the CFD industry, and one technology supplier, only five of them would have met the minimum standard of what derived data is defined as.

Therefore, there will always be a domino effect where the liability rests with the client organisation as their API Agreements did not cater for market data. They utilize fractional pip pricing with a typical spread being 1.

The firm is one of the most regulated, both in the US and abroad. They provide loads of research and tools for trading including regular trading webinars and continuation analysis. Deposits are accepted via credit card, wire transfer, eCheck or check, and withdrawals are available via wire transfer or check.

Another large forex firm providing forex trading to most countries, including the UK and the US. The firm is also high regulated, both in the US and abroad. The company also has affiliate agreements in Canada, Israel, Chile and Lebanon. FXCM provides a ton of high quality resources for traders in the form of webinars, courses, articles and videos.

The firm is also regulated in Singapore, Canada, Europe and Japan. Oanda provides great educational tools for traders, including daily analysis, videos, an e-course, articles and a wide-variety of online tools. If you take a deposit bonus, you are more likely to have troubles withdrawing. To avoid complications, avoid deposit bonuses. While these are award winning regulated brokers, always do your own research before depositing by reading comments on social media or monitoring broker discussion forums.

When doing this take comments from novice traders with a grain of salt; many traders lose money due to lack of strategy, discipline or market understanding, but they often blame their losses on the broker.

There are no trading fees.