The Commodity Futures Trading Commission (CFTC) says it has issued an order filing and settling an enforcement action against Utah-based Treasury Vault for acting as an unregistered retail foreign exchange dealer. Starting in September 2017, CFTC says Treasury Vault began offering FX services through its website to US retail customers who were not eligible contract participants […]
Tag: Retail Fx
In a speech delivered at an ACI Australia event in Sydney this week, Commissioner Cathie Armour of the Australian Securities and Investment Commission (ASIC) observed that the regulator “continues to respond to a high incidence of misconduct in the retail OTC derivatives sector and to see large sums of client losses”. In 2018 ASIC published […]
Following consultation feedback, the UK’s Financial Conduct Authority (FCA) has confirmed all firms acting in or from the UK are prohibited from selling, marketing or distributing binary options to retail consumers.
The FCA aired its concern about the products in late 2017, before issuing a consultation paper in late 2018 seeking industry feedback, It now says that following that feedback it will officially introduce new rules on April 2, 2019, “to tackle widespread concerns about the inherent risks of these products, and the poor conduct of the firms selling them”. It adds, “This has led to consumer harm in the UK and internationally through large and unexpected trading losses.”
MahiFX has announced its intention to sell its Financial Conduct Authority, Australian Securities and Investment Commission and New Zealand Financial Markets Authority licences.
The move signals an what the firm says is an “important strategic change” as it pivots away from providing retail FX brokerage services towards what it says is “core competency as a B2B technology provider to banks and brokers”.
David Cooney, co-founder and CEO of MahiFX, says, “The retail space is experiencing many of the challenges that the institutional space has been faced with for years.
Just two subjects fill our podcast this week as Colin Lambert and Galen Stops share (contrarian) views over the benefit (or otherwise) of closer links between retail and institutional FX markets.
The cynicism Lambert brings to that subject also permeates the second main subject – the release last week of two reports from Global FX Committee Working Groups on disclosures and “cover and deal” operators using last look. Our podcasters also take a look at the GFXC’s annual survey of opinions on the FX Global Code and while he admires what he terms “the optimism of youth” as expressed by Stops, Lambert is again wearing the cynical expression as they discuss some potentially concerning findings in the survey.
Not happy there, Lambert also tries to hit back at what he reports was “ridicule” aimed at him after last week’s podcast discussed his NOK/MXN prediction for 2019 by deflecting the issue onto one of Stops’ predictions – or rather one of what Lambert believes is a “non-prediction”. Will FX prime brokerage consolidation reverse (slightly) and will asset manager clients remain elusive? Find out by listening in.
We speak a lot about disruption in FX markets, but more often than not we focus on the trading piece of the puzzle. It is not only there that traditional models and values are being challenged, however, as was highlighted early in the Asian trading day today when news of three resignations from the UK government was reported.
It is not a new phenomenon, but this morning offered a dramatic and, for the incumbents, disturbing insight into the future when the Twitter-sphere had the news out well in advance of the traditional news wires.
The Australian Securities and Investments Commission (ASIC) has called on participants in the retail OTC derivatives sector to improve their practices after recent ASIC activities showed their conduct “fell short of expectations”.
The products offered by retail OTC derivatives issuers in Australia include binary options, margin foreign exchange and contracts for difference.
ASIC says that a recent review of 57 retail derivative issuers identified a number of risks associated with the products offered to retail investors by OTC derivatives issuers.
Private equity group CVC Capital Partners’ Asia Fund IV has had an offer accepted to acquire all of the outstanding equity of online retail trading technology and analytics provider Oanda Global Corporation.
Terms of the deal were not disclosed and it is subject to regulatory approval. Under the new ownership, Oanda will continue to be led by CEO, Vatsa Narasimha.
Siddharth Patel, senior managing director at CVC, says, “We look forward to working closely with Vatsa and his team as we help support Oanda, especially in Asia, in making strategic acquisitions and in investing to further broaden its product set.”
Online trading provider CMC Markets has responded to the recent announcement by the European Securities and Markets Authority (ESMA) that retail clients will no longer be able to use their current leverage levels, by creating a new CMC Pro account for eligible clients.
The ESMA changes establish margin limits for clients, rather than the broker-dealers and CMC says the new account will allow clients to continue to trade with their current leverage levels.To be eligible, clients will have to demonstrate that they are capable of making their own investment decisions.
ADS Securities has appointed Nael Saleh as head of retail sales in the Middle East and North Africa region, for its FX and CFD brokerage business.
He will report to ADS Securities’ global head of retail sales, Jason Hughes and joins from GKFX MENA, where he was director of operations, heading teams responsible for customer services and sales across a wide range of products on FX, CFD’s and commodities brokerage platforms. Previously, he was head of global sales at IronFX.