Breaking: FXPIG moves from New Zealand to Vanuatu
Citing increasing regulatory demands, FXPIG has relocated its operations from New Zealand to the Pacific island of Vanuatu after 7 years in establishment
After nearly six years of operations in New Zealand, under the FSPR, FXPIG is moving.
According to the company’s CEO Kevin Murcko, this tactical relocation is an initial step with an end goal of expanding its footprint and evolving the firm’s brand in light of the ever-changing global marketplace.
“The ability to grow WITH a regulator is a key, as over-bloated regulations can end up being a hindrance rather than a virtue” stated Mr. Murcko in a corporate statement today.
In May of 2016, Prime Intermarket Group Asia Pacific Ltd, an FXPIG Group Company, was issued a Principal’s License for dealing in securities, granted by the Minister of Finance and Economic Development of Vanuatu, under the arm of the Vanuatu Financial Services Commission.
Established in October 2009 by Mr. Murcko in Auckland, New Zealand, the acronym PIG stood for Premier Interchange Gateway, a term which earned the firm significant presence via its branding.
Mr. Murcko previously spent almost 8 years as a currency trader where he worked for himself trading all three major sessions with a focus on technicals including volume spread analysis, GANN lines, and support and resistance studies.
It certainly appears that New Zealand did not ultimately emulate Australia’s lead in which the regulatory ‘clean up’ which involved the inauguration of the Financial Markets Authority did not attract good quality and well established firms to remain in New Zealand, which is what ASIC achieved in Australia.
ASIC’s highly advanced and well organized system of regulation created one of the most secure and desirable locations from which to operate an FX brokerage, however New Zealand by contrast has experienced an exodus of firms to non-regulated regions.
New Zealand did not manage to retain the interest of brokerages once the overhaul of regulations took place, largely due to the stipulations imposed on brokers as well as the regulatory capital requirements that were invoked meant that there was no advantage for brokers to remain in New Zealand when they could instead obtain an ASIC license in Australia at a time during which the Australian authorities were (and still are) considered more astute.
Had this panned out differently, New Zealand’s FX industry could be somewhat different, as if this flight may not have occurred, and the highly recognized banking sector, non-corrupt jurisdiction and skilled staff would have perhaps been a boon to local brokerages.
Vanuatu, a Pacific Island jurisdiction 1750km north of the Australian coastline has become the latest place of interest, whereas others have sought offshore regions such as St Vincent & The Grenadines.