AMF Regulated Forex Brokers

amfRegulation of the forex market in France is the exclusive job of the Autorité des Marchés Financiers (AMF). This regulator is responsible for the regulation of the financial markets in France and also issues the rules and regulations under which forex brokers can do business in France.

AMF Regulated Forex Brokers in France:

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Understanding Regulation of Forex in France

The AMF as a regulatory body gets a lot of support and guidance for its actions from Eurpean regulations on the financial market. The European Market Infrastructure Regulation document, also known as EMIR, is the document that guides the AMF in its regulation of the financial marketplace in France.

Traditionally, the AMF discourages speculative investments on the retail end of the market. Rather, the organization has tended towards supporting retail investments in stocks, resulting in a plethora of stock market brokerage operations in France. The grouse of the AMF with retail forex investment is the promises made by the forex brokers on how much of returns that traders can make from the market. In other words, the AMF believes that retail forex brokers overhype the return factor and downplay the risks in retail forex.

The AMF actually took its time to perform a number of assessments on how the retail forex market works. It was forced to do this as a result of a sharp rise in complaints from the investing public about companies that were not listed as AMF forex brokers, offering this service. There is currently a blacklist of forex companies that have been barred from doing any kind of business in France. Furthermore, the AMF has started to block the websites of some of these companies from being accessible in France. The blacklist is extensive, covering brokers, their affiliate companies and associated entities.

So are there any AMF forex brokers at all out there?

AMF Forex Regulation in France: The True Position

However, we have to draw the attention of our readers to the fact that the AMF draws its regulatory strength from existing European Union laws regarding investments. For instance, the European Market Infrastructure Regulation provides for the existence of forex brokerage business as a legal, investable business. However there are rules and regulations that companies doing forex business must comply with. France is part of the EU and part of the European Economic Area, which means that it is also subject to the EMIR protocol. The EMIR document requires companies in the derivatives trading market space to comply with certain rules. These rules are binding on financial and non-financial counterparties, central counterparties as well as trade repositories (companies tasked with the responsibility of recording all derivative contracts traded between two counterparties).

EMIR as a law imposes the following responsibilities on concerned parties:

  • All over-the-counter (OTC) derivatives must be deemed to have sufficient liquidity and must be standardized to be cleared from a central location. This means that counterparty risk will be transferred in full to central counterparties (CCPs). The forex market clearly satisfies this requirement.
  • All derivatives brokers are expected to report all derivative transactions on their platforms to trade repositories.

So the problem is not with forex per se, but with the way the companies involved in the retail forex brokerage business carry on with their activities.

The AMF classifies companies in the financial sector as:

  1. Asset management companies
  2. Investment services providers (or investment firms), which is where forex brokers fall into.
  3. Banks
  4. Electronic payment providers
  5. Affiliate companies
  6. Custody account keepers
  7. Depositaries
  8. Investment analysts, etc.

Each category is supposed to abide by certain rules. A list of companies classified as being authorized and licensed to do business in any of these categories is available from the Financial Agents Register, also known as REGAFI. REGAFI is an online database maintained by the AMF and the Autorité de Contrôle Prudentiel et de Résolution (ACPR). This register is always kept up to date and allows the investing public to check the status of an AMF forex broker or any investment firm which has been licensed and authorized to provide investment services.

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Once a forex broker is examined by the AMF and found worthy of licensing according to EMIR protocols, approval is given and passed on to the the Autorité de Contrôle Prudentiel et de Résolution (ACPR), which now provides licensing and places this AMF forex brokerage company into updated list of authorized investment service providers.

acpr

Consequently, we have found 6 forex brokers that seems to have satisfied the requirements to be listed as AMF forex brokers. The list is reproduced below:

AMF_fxbrokers

So if you are looking to do business with an AMF forex broker, you can pick any of these listed brokers. However, it must be stated that this list is continuously updated, so you must always use the REGAFI webpage at Regafi.fr to confirm the licensing status of any AMF forex broker.

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