Regulation and License

Regulation and License

Lumentrades brokering services are provided by Lumentrades (Europe) Ltd. (“Lumentrades Europe”), a registered Cypriot Investment Firm (CIF). The company’s registration number is LT34121. Lumentrades Europe is regulated by the Cyprus Securities & Exchange Commission (CySEC) under license number 109/10. In the UK, Lumentrades (UK) Ltd. (“Lumentrades UK”), company registration no. 7667088 is authorised and regulated by the Financial Conduct Authority (FCA), under firm reference number 766554. Lumentrades Europe and Lumentrades UK both operate under and comply with the Markets in Financial Instruments Directive (MiFID). In Australia, services and products are provided by Lumentrades AUS Capital Pty Ltd. (“Lumentrades Australia”), ABN 84 223 884 470 is the holder of an Australian Financial Services Licence (AFSL) 552220 issued by the Australian Securities and Investments Commission (ASIC), and regulated under the Corporations Act (Commonwealth). Lumentrades Australia arranges for its clients to be provided services by Lumentrades Europe. Lumentrades USA is operated by Lumentrades USA LLC, which is registered with FinCEN as a Money Services Business.

Lumentrades and Brokers

The Terms and Conditions you agreed on upon registration stipulated which entity and regulation is applicable to you.

MiFID (Markets in Financial Instruments Directive) is a European Union law, which provides a harmonized regulatory regime for investment services across the European Economic Area. The main objectives of the Directive are to increase competition and client protection in investment services. The activities and services of LumenTrades USA, LumenTrades AUS, LumenTrades UK and Lumentrades Europe comply with MiFID requirements. All documentation and procedures are consistent with MiFID rules.

Lumentrades (USA) LLC.

Lumentrades USA having its registered office at 1455 NORTHWEST IRVING STREET, PORTLAND, OR 97209, UNITED STATES. is licensed to deal or make arrangements in investments as agent or principal on a matched principal basis and hold client money. LumenTrades USA deals with you as agent and will use another executing broker, including LumenTrades Europe or a non-affiliated third party, to execute our clients’ orders.

Lumentrades (Europe) Ltd.

Lumentrades Europe, having its registered office in Cyprus, is licensed to provide the investment services of reception and transmission of orders in relation to one or more financial instruments, execution of orders on behalf of clients, dealing on own account, portfolio management and Investment Advice. It is also licensed to provide the ancillary service of safekeeping and administration of financial instruments, including custodianship and related services. Lumentrades Europe deals with you either as principal or as an agent. When we act as an agent, we will use another executing broker, including a non-affiliated third party, to execute our clients’ orders.

Lumentrades (UK) Ltd.

Lumentrades UK having its registered office at SUITE C 5TH FLOOR, CONNECT CENTRE, KINGSTON CRESCENT, PORTSMOUTH, PO2 8QL, UNITED KINGDOM. is licensed to deal or make arrangements in investments as agent or principal on a matched principal basis and hold client money. LumenTrades UK deals with you as agent and will use another executing broker, including LumenTrades Europe or a non-affiliated third party, to execute our clients’ orders.

LumenTrades AUS Capital Pty Ltd.

LumenTrades Australia, having its registered office at ST GEORGES TERRACE, PERTH WA 6000, AUSTRALIA, is licensed to deal in derivatives and foreign exchange contracts as agent for you and as principal. When we act as an agent, we will use another executing broker, including LumenTrades Europe or a non-affiliated third party, to execute our clients’ orders.

Jurisdictions

Europe
UNITED KINGDOM Lumentrades (UK) Ltd. is regulated by the Financial Conduct Authority (FCA) and retains a cross border license from the FCA to offer its services in member states of the European Economic Area.
CYPRUS LumenTrades (Europe) Ltd. is regulated by the Cyprus Securities and Exchange Commission (CySEC) and retains a cross border license from the CySEC to offer its services in member states of the European Economic Area, and outside of it.
USA
USA LumenTrades USA is operated by LumenTrades USA LLC, which is registered with FinCEN as a Money Services Business.
Australia
Australia Lumentrades AUS CapitalAustralia Pty Ltd. authorised by the Australian Securities and Investments Commission (ASIC).

Regulatory Disclosures

Client Categorization

The Markets in Financial Instruments Directive (MiFID) requires the categorization of clients as Retail Clients, Professional Clients or Eligible Counter Parties. Lumentrades USA, Lumentrades Europe and Lumentrades UK categorize all clients as Retail Clients when opening a trading account, which have the highest level of protection (such as eligibility to the Investor Compensation Fund, Best Execution, and Safeguarding Clients Assets etc). Clients are allowed to request to be reclassified, in writing to Lumentrades Europe/Lumentrades UK/Lumentrades USA, as applicable, who may recategorize you according to the specifications, conditions, and procedures of MiFID. “Retail Client” is a client who is not a professional client or an eligible counter party. Eligible Counter party is a professional client or legal entity who provides investment services that involve the reception and transmission or the execution of orders. Clients under this category have the lowest level of protection. Professional Client is a client who possesses the experience, knowledge and expertise to make their own investment decisions and properly assess the risks that they incur and must comply with the following criteria: Α. Categories of clients who may be considered to be professionals: The following shall be regarded as professionals in relation to all investment services and activities and financial instruments:

1. Entities which are required to be authorized or regulated to operate in the financial markets. The list below should be understood as including all authorized entities carrying out the characteristic activities of the entities mentioned: entities authorized by a member state under a European Community Directive; entities authorized or regulated by a member state without reference to such Directive; and entities authorized or regulated by a non-Member State

  1. Credit institutions
  2. Registered Investment Firms
  3. Other authorized or regulated financial institutions
  4. Insurance undertakings
  5. Collective investment schemes and management companies of such schemes

  6. Pension funds and management companies of such funds
  7. Commodity and commodity derivatives dealers
  8. Other institutional investors.
  9. Locals
  10. 3. Large undertakings meeting two of the following size requirements, on a proportional basis

  11. Balance sheet total at least: 20,000,000 US Dollar
  12. Net turnover at least: 40,000,000 US Dollar
  13. Own funds at least 2,000,000 US Dollar
  14. 3. National and regional governments, public bodies that manage public debt, central banks, international and supranational institutions such as the World Bank, the Internal Monetary Fund, the European Central Bank, the European Investment Bank and other similar international organizations.

    4. Other institutional investors whose main activity is to invest in financial instruments, including entities dedicated to the securitization of assets or other financing transactions. They must however be allowed to request non professional treatment and Lumentrades Europe/Lumentrades UK/Lumentrades USA, as applicable, may agree to provide a higher level of protection.

    5. It is the responsibility of the client, considered to be a professional client, to ask for a higher level of protection when it deems it is unable to properly assess or manage the risks involved. This higher level of protection will be provided when a client who is considered to be a professional enters into a written agreement with Lumentrades Europe/Lumentrades UK/Lumentrades USA, as applicable, to the effect that it shall not be treated as a professional for the purposes of the applicable conduct of business regime.

    Β. Clients who may be treated as professionals on request: Clients other than those mentioned above, including public sector bodies and private individual investors, may also be allowed to waive some of the protections afforded by the conduct of business rules of Lumentrades Europe/Lumentrades UK/Lumentrades USA, as applicable. Both Lumentrades Europe, Lumentrades USA and Lumentrades UK are therefore allowed to treat any of the above clients as professionals provided the relevant criteria and procedures are fulfilled. Such as that the client is capable of making his own investment decisions and understanding the risks involved (fitness test). The company reserves the right to decline any of the above requests for different categorization Requests for more information and re-categorization shall be submitted to

Safeguarding of Clients Assets

We keep our clients’ funds in a segregated account, such that the clients’ funds will be separated from our own assets. Such separation of accounts is being supervised both internally and externally. We operate only with reputable payment institutions and payment providers such as Barclays Bank, Coutts and other first tier banks.

Capital Adequacy

In accordance with the applicable regulations, both Lumentrades Europe, Lumentrades USA and Lumentrades UK need to have own funds, which are at all times satisfy the minimum capital adequacy ratios of the European Capital Requirements Regulation. An investment firm must have in place sound, effective and complete strategies and processes to assess and maintain on an ongoing basis the amounts, types and distribution of internal capital that they consider adequate to cover the nature and level of the risks to which they might be exposed. These strategies and processes are subject to regular internal review, to ensure that they remain comprehensive and proportionate to the nature, scale and complexity of the activities of the Firm.