Florida-based foreign exchange traders I-Trade FX outbid Forex Capital Markets (FXCM) in the quest for the assets of failed FX trading solutions provider CFG Trader.

The US District Court in Richmond, Virginia, approved the transfer of the assets of

CFG Trader to I-TradeFX. Richmond, Virginia-based CFG Trader failed to meet the NFA’s capital requirements and was forced to liquidate its open foreign exchange positions on March 21.

FXCM had agreed last month to take on all of the open trading positions of CFG Trader, after CFG, owned by Forefront Investments Group, was forced to liquidate its positions by the US National Futures Association (NFA).

I-TradeFX is restoring the trading accounts of CFG Trader’s customers and plans to have its trading platform ready for them by 7:00pm EST on April 15, 2007, and 100% of customers’ funds accessible as of Monday April 16.

Drew Niv, CEO of FXCM, says: “We are pleased that the trading accounts have been successfully transferred. The client traders will hopefully lose no money because of CFG’s situation. Of course, we are disappointed that our own bid was not accepted.”

Niv adds that the CFG incident highlights the fact that there are still some companies in the forex industry that are inadequately capitalised. To this end, FXCM is inviting other forex firms to join it in a petition to convince the US Congress to pass legislation to prevent similar problems.

Niv says: “In fact, we have even established a political action committee to support and coordinate the actions of this safety of funds initiative, and we have convinced three other large FCMs to add their names to our petitions. We are urging every firm in our industry to join us in this effort.”