The Capital Markets (Online Foreign Exchange Trading) Regulations
2. Interpretation
2. Interpretation
In these Regulations, unless the context otherwise requires—"binary options" means an option which involves making a bet on the price movement of an underlying asset in the near future for a fixed amount;"client" means a person who is registered with an online foreign exchange broker or money manager and has executed an agreement with the online forex broker or money manager for dealing through such online foreign exchange broker or money manager in foreign exchange transactions;"client account" means a bank account established and maintained by an online foreign exchange broker for the purposes of regulation 23;"client funds" means money of any currency which a client deposits in a client account or which the online foreign exchange broker owes to a client and includes any other property deposited with an online foreign exchange broker in the course of its business for which that broker is liable to account to its client and any money or other property accruing therefrom;"cornering activity" in relation to foreign exchange means use of currency held in significant amounts to be able to manipulate its price;"leverage" means the ratio of the market price of an agreed multiple of contracts to the agreed margin where margin is the deposit or payment made to create, vary or maintain a position of the contracts;"money manager" means an entity licensed by the Authority to engage in the business of managing the online foreign exchange portfolio of an individual or institutional investor in return for a fee based on a percentage of assets under management;"dealing online foreign exchange broker" means an entity licensed by the Authority to engage in the business of online foreign exchange trading as principal and market maker;"online foreign exchange trading" means the internet-based trading of foreign exchange and includes trading in contracts for difference based on a foreign underlying asset;"online foreign exchange trading platform" means an internet-based trading system through which foreign exchange trading is conducted; and"non-dealing online foreign exchange broker" means an entity licensed by the Authority that acts as a link between the foreign exchange market and a client in return for a commission or mark-up in spreads and does not engage in market making activities.Source: Kenya Law