The Certification process helps ensure that our supervisory responsibilities with regards to the dispute resolution process that the Financial Commission facilitates will remain fair and equitable.
Some items in the following questionnaire below may not apply to you. For example, if the system is hosted on your licensee’s data servers, which you have no control of. Nonetheless, applicants must let us know of such arrangements and provide the Financial Commission with minimum technical requirements to licensee’s infrastructure, as explained in the guidelines below.
In addition to questions, the Financial Commission must review technology providers written procedures to address the security, capacity and integrity of trading, and confirm such procedures are being followed.
Certification Guidelines Questionnaire (To be completed by all applicants):
1. SYSTEM SECURITY
- Authentication process
- Firewalls, Data encryption algorithm and suspicious activity monitoring
- Authorization process
- Periodic Testing
- System Administration procedures
2. SYSTEM CAPACITY
- Server infrastructure and system backup procedures
- Capacity monitoring procedures
- Stress-test procedure
- Software update procedure
3. INSTRUMENTS AND ORDER TYPES
- All instruments available within platform
- List all types of orders that are available in the platform.
4. PRICING AND EXECUTION POLICY
- List of quote-feed providers
- Can broker set restrictions on trades? If yes, please describe.
- Does system maintain applied restrictions logs?
- Can broker adjust the price feed? If yes, please describe who can do so and under which circumstances?
- Does system has a manual price change/input logs?
- Does system has “bad print” or “price spike” protection?
- Can broker set or execute orders on behalf of clients?
- Does system maintain manual execution logs?
For Binary Options
- Please provide the options pricing and payout calculation methodology.
- Do you change the payouts during the option term?
- Do you change payout terms based on market volatility?
- Do you provide incentives to trade in a certain direction due to uneven spread of risk at the option expiry date?
- Does system maintain the logs of payouts change?
5. REPORTING AND RECORD KEEPING
- System must store tick data for at least 45 days.
- System must have detailed report on all trades and orders places by the client or by the company on behalf of the client
- Breakdown procedures that contain responsible employees for major blocks of the system and their main duties.
6. BUSINESS CONTINUITY/ DISASTER RECOVERY PLAN
Financial Commission believes that disaster recovery and business continuity issues are of utmost importance and trading technology providers must take a proactive approach to ensure that they have an adequate disaster recovery plan in place.
Disaster Recovery plan must contain the following information:
- Backup Facilities
- Implementation of Disaster Recovery/Business Continuity Plan
- Disruptions of Third-Parties
- Annual Testing
- Communication with the Financial Commission
- Employee and Emergency Contact Information
Completed answers and requested information to the questions above should be submitted to the certification board of the Financial Commission, either in Microsoft Word Format, or PDF format.
Education providers will be required to provide answers to specific questions designated by the Commission’s Certification Board, including, but not limited to the following:
- Material’s author(s)
- Author(s) credentials
- Materials last updated date
- Display of risk loss disclaimers
- Number of hypothetical trade examples (total)
- Number of hypothetical trade examples resulting in a loss
- Number of hypothetical trade examples resulting in a profit
- Source of price charts in educational materials
- Source of pricing in price charts in educational materials
- Price of educational offering (if sold to users)
- Whom is the educational offering provided to?
The full list of items will be provided to eligible applicants who submit a formal request to Financial Commission.
In order to initiate the Educational offering certification process, a firm can submit an email request to the Financial Commission where it will be furnished with a certification agreement and list of documents and materials required by the Financial Commission to evaluate the applicant for Educational certification.
Contact us today to certify your educational offering with a respected and independent self-regulatory organization