Here is the article converted into Markdown format:

Cyprus’ Financial Watchdog Cracks Down on Counterparty Clearing Houses

======================================================

In a bid to ensure the stability and integrity of the financial markets, Cyprus’ Securities and Exchange Commission (CySEC) has been entrusted with a range of powers and duties to oversee counterparty clearing houses, also known as trade depositories of over-the-counter (OTC) derivatives.

Authorization and Licensing

The CySEC requires investment services providers to obtain prior authorization before offering their services. Once authorized, the commission registers all Cyprus Investment Firms (CIFs) in a public register, which contains information on the services and activities for which they are authorized. The CIF authorization is valid throughout the European Union and allows firms to provide services or perform activities across the region.

Key Requirements

Prior authorization required before offering services
Registration of CIFs in a public register
Authorization valid throughout the European Union

Capital Requirements

The CySEC also sets strict capital requirements for CIFs, with firms that deal in financial instruments for their own account or underwrite issues of financial instruments on a firm commitment basis required to maintain initial capital of €125,000. Firms offering multiple services must maintain initial capital of at least €730,000.

Capital Requirements by Service

Initial capital of €125,000 for firms dealing in financial instruments for their own account
Initial capital of €730,000 for firms offering multiple services

Certifications and Training

All individuals employed by CIFs are required to possess sufficient knowledge, skills, and experience to perform their duties. Employees involved in the provision of investment services or carrying out investment activities must be certified and registered in a public register after passing relevant exams. They must also complete continuous professional training (CPT) to maintain their certifications.

Training Requirements

Certification and registration in a public register
Completion of continuous professional training (CPT)

International Affairs

The CySEC actively participates in European and international affairs, including concluding bilateral and multilateral agreements with foreign supervisory authorities, participating in committees and groups of the European Securities and Market Authority (ESMA), and participating in the International Organization of Securities Commissions (IOSCO).

International Cooperation

Bilateral and multilateral agreements with foreign supervisory authorities
Participation in committees and groups of ESMA
Participation in IOSCO

The CySEC recognizes the importance of corporate social responsibility (CSR) and has adopted various actions to contribute to society. The regulator implements several initiatives related to social responsibility, demonstrating its commitment to safeguarding the interests of investors.

CSR Initiatives

Various actions to contribute to society
Implementation of social responsibility initiatives

Conclusion

In conclusion, the CySEC plays a crucial role in ensuring the stability and integrity of Cyprus’ financial markets. With its strict authorization and licensing requirements, capital requirements, certifications, and training for employees, and international cooperation, the regulator demonstrates its commitment to protecting investors’ interests. As the financial landscape continues to evolve, the CySEC remains vigilant in its efforts to safeguard the interests of investors and maintain confidence in the financial system.