HCMC, the Hellenic Capital Market Commission, regulates the compliance of financial services firms with capital market laws. Furthermore, it runs its operations through fees paid by supervised entities.
Investment firms, mutual fund management firms, portfolio investment companies, real estate investment companies, and financial intermediaries fall under its legislation.
Additionally, HCMC supervises companies listed on the Athens Stock Exchange to ensure compliance with capital market regulations. Due to a financial crisis erupting on the
Athens exchange in mid-February 2010, short-selling of shares listed on the exchange was banned until June 2010.
What is the Hellenic Capital Market Commission?
The Hellenic Capital Market Commission became a legal entity in 1966. This agency was established by Law 2324/1995 to ensure that the capital markets operate orderly and efficiently, which is crucial to a nation’s economic growth.
HCMC management and staff have functional and personal independence to carry out their missions following European and Greek legislation. Additionally, HCMC has its own resources and does not use state funds to accomplish its goals.
HCMC’s Board of Directors prepares the budget for approval by the Minister of Finance.
Therefore, HCMC submits its reports to the President of the Greek Parliament and the Minister of Finance. HCMC is a member of the European Securities and Markets Authority (ESMA).
Nonetheless, the HCMC chairman does respond to requests from the relevant committee of the Greek Parliament regarding capital market issues.
HCMC is also a member of the International Organisation of Securities Commissions (IOSCO). In addition, HCMC enters into bilateral and multilateral agreements with other competent authorities to exchange confidential information and cooperate on matters within their expertise.
HCMC responsibilities
One of the major responsibilities of the commission is to oversee the proper implementation of capital market regulations. Additionally, it contributes to developing the capital market regulatory framework at a national, European, and international level.
Participates actively in the work of the council of the European Union, ESMA, and IOSCO.
HCMC supervises various Greek and Foreign investment companies, collective investment corporations, managers, and new investment undertakings.
In addition, shares of listed companies face transparency obligations and obligations to notify major holding changes, takeover bids, corporate events, and prospectuses in the case of right offerings.
HCMC overseas, as well, issues related to market abuse, such as insider trading. As well as the compliance of those being supervised with anti-money laundering legislation.
Additionally, it regulates markets, clearinghouses, and investor compensation plans such as the Guarantee Fund.
Also, the commission observes domestic and international developments, conducts research as needed, and certifies the qualifications of market participants. Furthermore, it receives and investigates investor complaints.
HCMC Forex brokers and regulations in Greece
Recent economic turmoil in Greece and the EU’s subsequent bailout efforts have made the country a hot topic in news reports. Even though Greece does not have a long history of setting up brokerage firms, it produces some of the industry’s top firms.
Additionally, HCMC oversees the securities market and OTC products in Greece, as well as Forex brokers. Following several measures and policies introduced by the government to satisfy the EU’s requirements, Forex and CFD trading have taken a big hit in the country.
The HCMC is one of several financial regulatory authorities in Greece. Therefore, HCMC-regulated brokers may also offer Forex and other CFD products, subject to the rules and regulations issued by HCMC and Greek authorities.
Since HCMC in Greece serves institutional and retail FX investors, they are not affected by the Greek economic crisis.
The EU membership of Greece allows forex brokers to cater to EU forex traders through the MiFID derivative and the European Economic Area agreement. In addition, Forex brokers in Greece can also cater to international clients.
Thus, most foreign forex brokers offering their services to Greek FX traders are relatively safe from market volatility. Therefore, most of the traders within the EU are protected.
Additionally, the Greek Parliamentary reforms of the banking sector included several capital control regulations for financial companies enacted by the HCMC.
However, brokers subject to HCMC regulations must entrust operating capital and client funds to a Greek bank.
As part of today’s capital control measures, financial firms, brokers, and traders will no longer access their funds freely, limiting their freedom.
Most Forex brokers meet their obligations in Greece without making significant concessions, which is very good for investors.
Regulatory Compliance for HCMC Forex brokers as a result of a financial crisis
HCMC is one of the oldest and most reputable organisations in the world, founded in 1927. Greek history shows success on a global stage despite the current economic difficulties.
In the early 20th century, the global economy took the initiative for the establishment of HCMC. Because Greece was once the world’s most advanced civilisation.
Unfortunately, the Greek government has been unable to enforce any severe regulation. That would limit the way financial companies operate in the country despite the history of HCMC.
To protect the integrity of the market, the HCMC has introduced various policies and strategies. So that it ensures that regulated brokers and other corporate firms follow a standard code of conduct.
Bottom line
Hellenic Capital Market Commission is a legal entity created by Greek law in 1991. However, in reality, the Greek law of 2304 and 1995 organise it.
In particular, it seeks to ensure the efficiency and security of the Greek capital market. That is critical to the growth of the national economy. In addition, as a member of the European Securities and Markets Authority, the HCMC operates within the market framework.
Furthermore, it is responsible for overseeing Greek securities laws, including tender offers.
