Regulatory Alerts2018-06-14 | 107/04Approval of Additional Regulation Rule for Brokerage Companies Trading High-Risk Financial Instruments
The National Bank of Georgia issued Order N107/04 to approve a regulatory framework governing brokerage companies trading high-risk instruments such as contracts for difference and binary options. The rule mandates strict operational, risk management, and capital adequacy requirements, including leverage caps, mandatory stop-loss mechanisms, and reinsurance obligations for firms acting as counterparties. Additionally, it enforces rigorous client protection standards through standardized contracts, transparent advertising, and mandatory disclosure of loss statistics to prevent market manipulation and ensure investor awareness.
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