Regulation

The financial strength of the group is integral to Monex’s past and continued success in the future.

Regulatory Status

Monex Europa S.L. (“MESL”) is authorised and regulated by Banco de España (“BoS”) as an Authorised Payment Institution (Regulatory Licence Number 6936). MESL offers Spot FX contracts and FX Forward contracts which are entered into for payment purposes, i.e. for the purposes of payment for identifiable goods, services, or direct investments.

All FX transactions must be physically settled – the client delivers the sold currency, and we pay out the purchased currency. MESL is not permitted to allow clients to enter into FX Forward contracts for speculative purposes, repayments linked to loans, or to otherwise hedge FX outside of making payment for identifiable goods or services, or direct investments.

What we do with your money

As an Authorised Payment Institution, MESL does not protect client money under any financial services compensation scheme. However, client funds are protected under the safeguarding scheme applicable to payment service providers. This means that MESL holds all client money in separate correspondent banks, away from MESL’s own operational funds and as such, should something happen to MESL, client funds are ringfenced and protected. No creditor can hold a claim to any of the funds held in such accounts. I.e., should MESL go insolvent or into administration, MESL’s correspondent banks have a responsibility to return the funds to our clients as soon as possible.

Which funds are safeguarded by Monex Europa S.L.?

As an Authorised Payment Institution, MESL must safeguard all funds received from clients in order to execute payment transactions regardless of the destination of payment.

The MESL system used to reconciliate and direct funds considers all client balances irrespective of which banking institution or jurisdiction the funds are held in. MESL calculates and safeguards funds daily, ensuring that the correct value of funds are held for each client, and that the funds are not co-mingled with MESL’s own funds. All accounts in which Client funds are settled into, are from top tier Authorised Credit Institutions (based in the EU and UK). All of these accounts are accompanied by acknowledgement letters from the Credit Institution that the funds are ring-fenced from all other funds, and that no creditor can hold a claim to any of the funds held in such accounts. I.e. should MESL go into insolvency, MESL’s correspondent banks have a duty to return the funds to clients as soon as possible.

For specific queries, please contact: regulatorycompliance.mesl@monexeurope.eu

Settlement

MESL provides clients with a secure trading environment to transact foreign exchange business. Our clients are provided with a highly secure system for communicating payment instructions and other sensitive data globally, while all outgoing payments and FX transactions made can be traced up to delivery.

Payments are settled through Barclays Bank in Frankfurt, France, Spain and London; BBVA in Spain, and Banco Monex.

MESL operates under the Payment Service Directive 2 and its transposition into Spanish Legislation. Therefore, client funds will ultimately upon receipt sit in “safeguarding” client trust accounts in line with the applicable regulations.

Corporate member of SWIFT – MEUOESMM. This is MESL’s SWIFT BIC.

Settlements team:

E: settlements.mesl@monexeurope.eu

T: +34 919 030 444