Spain’s CNMV warns of unregulated forex broker Dax300

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CNMV logo
Spain’s financial markets and services regulator CNMV has issued a warning against Dax300. According to the public warning notice, Dax300, operated by Brown Fox Limited, is not authorized to provide investment services or investment advice and auxiliary services, including foreign currency transactions in Spain.
The National Securities Market Commission (often abbreviated as CNMV) is the Spanish government agency responsible for the financial regulation of the securities markets in Spain. It is an independent agency that falls under the Ministry of Economy, Industry, and Competitiveness. The regulator maintains a register with investment companies that are authorized to operate in Spain.

Dax300 logo
Dax300 is an offshore forex and CFDs broker that offers to trade on 52 currency pairs, 120 Global Indices, Gold, Oil, Silver & More. The broker is owned and operated by the Brown Fox Limited, a Marshall Island-based entity. However, there is no information about the company's actual location neither its contact details provided on the website.
Another red flag for those, who plan to invest with Dax300 is the negative reviews that can be found on the forums, etc. Traders state that the managers of the company refused to approve the withdrawal requests and were trying to make them invest more. Also, according to some reviews, broker's employees, while cold-calling, tell that they are based in London, UK. Although, we already know that such statements are false and Dax300 is not regulated by any authority and there is no regulatory body that monitors its activity to ensure it sticks to best practices.
We recommend to stay away from the unregulated brokers and pay more attention to the reliable and licensed ones. All the warnings from the regulators are meant to protect the public from the fraudulent unlawful financial activity.
You can read our review on this broker here.

Is The SP500 About to Crash?

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The SP500 chart

US equities fell sharply over the previous days, ending their immediate uptrend momentum. Is a more extensive correction is ahead of us, or will the dip be quickly bought? We shall see.

During last week’s Powell presser, he said that the risk of persistingly higher inflation has clearly risen, and he thinks the (monetary) policy has adapted. Additionally, he announced that inflation doesn’t look transitory now (how shocking) and looks more structural.

As a result, it appears the Federal Reserve (Fed) has turned more hawkish, and it might quicken the pace of the tapering process, whihch is currently scheduled to end by July.

The Fed is Hawkish Amid Rising Inflation

This week’s US inflation data could confirm that view as CPI inflation is expected to rise further toward 7%, while the core inflation is also seen jumping toward 5%. At the same time, the Fed continues with its Quantitative Eesing (QA) program, buying 100 billion USD of bonds each month, and rates are at zero. It’s a crazy world.

The market now expects the Fed to raise rates in June 2022, and two to three rate hikes are priced in for the following year. Will that be enough to tame inflation? Likely no. 

Additionally, investors have learned that every time there is a drop in stocks, the Fed comes to the rescue. But this time, it might be different. The central bank has no options for supporting the markets in this stage of the cycle – it must tighten monetary policy or risk double-digit inflation, destroying the middle class and leading to inflation spiraling out of control.

Therefore, the actual correction in equity indices might be the start of something more significant. We don’t want to sound any alarms, but equities are overbought, indices are driven higher by several large-cap stocks, and smaller companies are already in a downtrend.

The Daily Chart Still Seems Bullish

On the other hand, the technical situation for the SP500 index remains bullish. The latest correction brought the index to its 50-day moving average (purple line) and previous highs in the 4.550 USD area. Bulls immediately bought the dip, and it looks like the worst is over. However, the index must post new highs to confirm the bullish bias.

Alternatively, if the current bounce fails (amid the mentioned factors above), bears could push the index below 4,550 USD, targeting the 200-day average at around 4,350 USD. That would be a healthy correction in the current overbought environment. 

New Zealand’s FMA Warns Against Managed Forex Hub

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In the recent regulatory statement, New Zealand’s Financial Markets Authority (FMA) (https://fma.govt.nz/) has reported against Managed Forex Hum Limited and warned the customers to not use the products and services offered by this company. The regulator is concerned about the deceptive statements posted by managed Forex Hub Limited on its website www.managedforexhub.com as the company made representations regarding the products and services registration on the Financial Service Providers Register, that the firm were offering, although the entities were provided from unauthorized groups. The main concern was specifically on the registration as a financial service provider and that the Managed Forex Hub belonged to a dispute resolution plan. These are the reasons for the FMA to consider the misleading moves of the mentioned company. The Managed Forex Hub also weren't able to provide to the FMA the explanations regarding the company's withholding the funds of its investors. This brokerage is not licensed to provide financial services in New Zealand and the regulator warns traders to be cautioned when dealing with it. New Zealand's Financial Markets Authority provides warnings and alerts when there's a suspicion for the investors to get in trouble and risk their funds. The list of the blacklisted firms or individuals includes those that are not licensed or authorized to provide financial services in New Zealand.

FMA released fourth AFA information report

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The Financial Markets Authority (FMA) has released its fourth statistical report on Authorised Financial Advisers (AFAs) in New Zealand. The requirement of the regulator is year-to-year submission of the annual information return from the financial advisors. The Report is relevant for AFAs and other members of the financial services industry.

The Report provides information on the profile of AFAs, the types of services provided by AFAs, the profile of the AFA's clients, how AFAs are paid, the types of KiwiSaver advice provided, the amount of insurance advice, and the other services provided by AFAs.

The data for the issued report was taken from the questionnaire to provide a snapshot of the sector for the period of 12 months ending June 2017. In order to enable the industry, media and the interested members of public to better cooperate and study the data, the report was published in Tableau.

The majority of AFAs can give personalised financial advice on all categories of financial products. It is important to differentiate AFAs from RFAs and QFEs. Registered Financial Advisers (RFAs) are not licensed or regulated by the FMA. RFAs can give both class and personalised advice on all financial products and non-investment financial products. As to the Qualifying Financial Entity (QFEs) advisers, they do not need to register individually. The y are allowed to give personalised advice only about products provided by the financial services firm that employs them. This firm is responsible for the given advice.Around one third of AFAs work for QFEs.

LMAX Exchange acquire Cyprus Broker

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One of the leading FCA regulated FX brokers LMAX Exchange approved its purchase of Cyprus Broker – CB Capital Business Ltd in conclusion bringing better global expand for LMAX offering.

LMAX is an already well known professional trading service broker that builds its strong position within the industry and now together with accomplished deal broadens its presence to even further global covering.  Learn more about established LMAX Broker Europe CySEC license by the link.LMAX Exchange acquire Cyprus BrokerLMAX Exchange acquire Cyprus Broker

This important provision will bring not only better possibilities for regions like Middle East, Southern Europe and further, but also bring enhanced liquidity to brokers and market participants to better market access. LMAX Exchange Group already serves clients from over 100 world countries through its eleven world offices and makes all the necessary steps to efficient trading conditions even through Brexit or other possible outcomes ensuring LMAX clients remain unaffected. LMAX has always been strong with industry innovation, strict pricing and timing priority for orders, of course, fantastic execution and ultra-low latency, so still clients may benefit from comprehensive access to markets under any conditions.LMAX awards

Moreover, LMAX being one of the biggest global institutional exchanges and liquidity providers shows its constant growth in various directions and recently LMAX starts to publish its daily trading volumes on Cryptocurrency exchange. As LMAX said, it is an obvious surge in crypto trading activity across platforms that transact solid turnover and making new records, in reverse bringing higher volatility due to growing demands. So to get offering even better LMAX Digital is now placing market information about trading volumes and sizes in real time.

Generally, LMAX is a part of the global LMAX Exchange Group multiply regulated and awarded broker for its high standards and professional ability to trade through a central limit book. It means you will get tight lowest spreads and utmost liquidity due to proprietary trading platforms and companies LMAX work with. You may read full LMAX Exchange Review by the link and get to know about their offering in a detail in reverse proposing your professional trading solutions.

BNP Paribas Asset Management obtains QDLP license in China

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BNP Paribas Asset Management (BNPP AM) announced that its wholly foreign-owned enterprise, BNP Paribas Overseas Investment Fund Management (Shanghai), has been granted a qualified domestic limited partner (QDLP) qualification. The company says it is going to be the first fund manager in the world with QDLP license to offer environmental, social and governance (ESG) investments to onshore clients.

The Shanghai-based QDLP programme allows global fund managers to raise funds from Chinese investors to purchase overseas traditional and alternative assets. The company said that the initiative to launch a ESG-related product corresponds to the increased attention of the mainland investors to sustainable investment, which is partly because of the increased validation of the approach of the government and industry organizations of China.

QDLP qualification programme gives the qualified Chinese investors an access to the global expertise and opportunity for them to be investment solutions providers. Those who search to diversify the funds across the range of numerous assets will be able to do that on Chinese market.

BNP Paribas AM has been giving the opportunity for its global clients to access the Chinese market as one of the biggest Qualified Foreign Institutional Investor managers since 2004. The company was granted one of the first RMB Qualified Foreign Institutional Investors licenses in France and Eurozone in September 2014. Since then, the firm has obtained the licences in Hong Kong and Korea. On the way to getting the QDPL license, BNP Paribas AM established its Wholly Foreign-Owned Enterprise (WFOE) in December 2014. The company is one of the first group of global asset management operating in the Shanghai Pilot Free Trade Zone.

ASIC suspends the Australian Golden Securities Ltd licence

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ASIC logo

ASIC has suspended the Australian financial services licence of Melbourne-based financial services provider Australian Golden Securities Ltd until 21 May 2020. Australian Golden Securities has held AFS licence no. 363925 since 16 November 2010.

According to the official statement, the licence has been suspended because Australian Golden Securities has not met its obligations as an AFS licensee.

Australian Golden Securities logo

ASIC found that Australian Golden Securities failed to lodge its accounts and audit report as a licensee for the year ending 30 June 2018 and lodge financial reports or compliance plan auditor reports for the registered managed investment schemes it operates for the year ending 30 June 2018. The company has not notified ASIC of changes to its external dispute resolution scheme (EDRS). It also has failed to maintain organisational competence or the resources required to provide the financial services covered by its licence and comply with the financial services laws.

Upon receiving the notice of hearing from ASIC, Australian Golden Securities has taken steps to address a number of concerns including notifying ASIC of changes to its EDRS and applying for a variation to the conditions of its AFS licence. The regulator is currently considering this application.

Australian Golden Securities has not yet fulfilled its financial reporting and audit obligations. The suspension period will provide Australian Golden Securities with the opportunity to lodge its outstanding accounts, financial reports and auditor reports, and do all things necessary to address ASIC’s outstanding concerns in relation to its AFS licensee obligations.

ASIC Commissioner Danielle Press said, “It is important to get the basics right.  A licensee’s failure to lodge its financial and audit reports on time indicates a lack of commitment to compliance with the law.”

You may check our ASIC-Regulated Forex Brokers list.

Martin Jetter becomes Chief Controller of Deutsche Börse

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Deutsche Börse Group logo

IBM Manager Martin Jetter becomes the new Chief Controller of Deutsche Börse. The Supervisory Board nominated the 60-year-old Jetter as successor to Joachim Faber. Faber had announced that he would retire after the Annual General Meeting in May 2020.

Jetter has been on the supervisory board of the stock exchange operator since 2018 and was considered a favorite for Faber succession. Investors are pleased that the stock market has chosen a technology expert, after all, IT and new technologies are of paramount importance to the Group.

Faber is also satisfied that his successor has been clarified. "Martin Jetter is an internationally experienced personage who has a deep understanding of technology and market infrastructure," he said.

Ex-Allianz CEO Faber has been a member of the Supervisory Board of the Stock Exchange since 2009, and has been Chairman since 2012. In 2017 he came under pressure because of the collapsed merger with the London Stock Exchange and a preliminary investigation against ex-chief Carsten Kengeter. 

“I welcome the fact that the Supervisory Board has so quickly found a candidate for my succession. Martin Jetter is an internationally experienced personality with a deep understanding of technology and market infrastructure. With Deutsche Börse, he finds a company that is in excellent shape and that has all the prerequisites to continue to be successful in global competition,” explained Faber.

You may check the list of the Regulated Brokers here.

Sydney FC Renew AETOS Partnership For AFC Champions League

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AETOS Review

Sydney FC has renewed its partnership with AETOS Capital Group for a third consecutive AFC Champions League campaign.

The deal will see the Australian Forex broker continue to be the Principal Partner of Sydney FC for Asia’s most prestigious club competition.

The AETOS logo will take pride of place on the front of the Sky Blues’ home and away kits during the AFC Champions League 2020 tournament which begins with Wednesday’s match in Japan against J-League Champions Yokohama F. Marinos.

AETOS has supported the Sky Blues since their AFC Champions League 2018 campaign, and this new sponsorship will continue to consolidate both the club and AETOS’s influence in the Asia-Pacific market.

Sydney FC Chairman Scott Barlow welcomed AETOS’s extension, with the club looking forward to their fourth campaign in five years in the Asian tournament.

Sydney FC logo

Scott Barlow has commented on the event: “We are delighted to be renewing our partnership with AETOS for a third consecutive AFC Champions League campaign. We have built an incredibly strong relationship with AETOS and the continuation of our sponsorship is proof of the mutual trust and understanding between our two organisations. It is further evidence of the strong and healthy long-term commercial network we have at Sydney FC.”

Senior Vice President Councillor Mike Thomas from AETOS Capital Group added: “AETOS is proud to be continuing as the Principal Partner of Sydney FC for a third successive AFC Champions League tournament. We have an extremely healthy partnership with Australia’s number one football club and we are heavily committed in our support of the Sky Blues on their 2020 campaign in Asia,” he continued. We wish Sydney FC’s players and staff well in their quest and are looking forward to seeing more Sky Blue success.”

AETOS is a global provider of FX and CFDs that gives its clients access to a wide range of markets including forex, metals, energy, and indices while serving their clients through corporate headquarters in Sydney Australia and serving global presence through London, UK office and customer support office in China. You can read our full AETOS review here.