FXCM UK claims it faces no fines, no public sanctions from the FCA

Maria Nikolova

The business practices indicated in settlements of FXCM and US regulators have allegedly not led to any detriment for customers of FXCM UK.

One of the foci of industry attention after the February events that led to FXCM’s US market exit has been on possible action against the broker by non-US regulators. Several months have passed since the settlements between FXCM and US regulators became a fact and, yet, there has been no action by other regulators. A persisting question has been: Will the UK Financial Conduct Authority (FCA) do anything?

We have just been provided with the official stance of Forex Capital Markets Limited (FXCM UK) on the matter. According to a regulatory filing, FXCM UK is not facing any regulatory action from the FCA over the business practices uncovered by US regulators and made public in February.

Here is what FXCM UK (referred in the text below as “the Company”) says:

“The Company’s Board has received thorough explanation of all the matters outlined in the CFTC and NFA letters, both from FXCM Group’s general counsel and external law firms engaged to represent the FXCM Group during the settlement process. After such an explanation the Board is satisfied that no customer detriment to the Company’s clients has occurred, neither have clients been misled as to the execution policies of FXCM Group. We are therefore comfortable that the Company will not be put into enforcement with the FCA and will not face any fines or public sanctions.

FXCM UK insists in its report that one of its execution models is Non Dealing Desk (NDD).

To make the picture even more bullish, FXCM UK promises new platforms to its clients, including MetaTrader 5 (MT5).

On the financials side, let’s note that the company registered a loss of $7.8 million for the year to December 31, 2016, compared to a loss of $7.82 million in 2015. The Board of Directors of FXCM UK insists that the company is capable of meeting its obligations at least in the next 12 months.

Following the reporting period, Drew Niv and Brandon Mulvihill resigned as directors of FXCM UK. Earlier this month, Mr Niv officially resigned as interim CEO of FXCM Inc, now known as Global Brokerage Inc (NASDAQ:GLBR).

Read this next

Retail FX

Stephen Kalayjian launches educational and community platform TradeEZ

TradeEZ has partnered with online broker TradeZero to provide chart overlays that can be accessed on the TradeZero platform. In the future, the firm will be looking to partner with some of the largest firms around the world.

Retail FX

LiteFinance launches new mobile app on Google Play

The mobile app allows users to trade and copy professional traders’ positions and gain access to trading chat rooms.

Technology

ECXX taps OneTick for data management and analytics

OneTick is asset class-agnostic and currently has customers across FX, equities, futures, CFDs, FI, and options.

Industry News

$1.5 million: SEC fines BNY Mellon Investment Advisor for misstatements and omissions about ESG

Investors are increasingly focused on ESG considerations when making investment decisions.

Digital Assets

Mercuryo reaches 3 million users amid crypto payments’ US and Asia expansion

“The opportunities for linking crypto and fiat currencies are abundant. From crypto projects that require fiat solutions (like fiat on and off ramps and IBANs), through to crypto for traditional fiat systems, and solutions for fintech companies that enable clients to buy or sell crypto within their own infrastructure.”

Retail FX

Maltese watchdog warns of bogus broker Perfect Choice Trade

The Malta Financial Services Authority (MFSA), the regulator responsible for the oversight of the forex  sector in the Mediterranean island, today issued a warning against a forex broker that offers its services without having the authorization to do so.

Digital Assets

Dukascopy warns of fake website impersonating its cryptocurrency

Switzerland’s forex bank and broker, Dukascopy, today warned against a fraudulent website that have been falsely claiming affiliation with its ‎authorized brand.‎

Uncategorized

Freetrade raises £30 million to fund business expansion

Freetrade, which calls itself a challenger stockbroker, has raised £30 million in debt financing led by a clutch of existing investors.

Digital Assets

Crypto assets under management at lowest point since July 2021

Crypto investment products registered outflows for a second consecutive week, the bulk of which came from bitcoin funds, according to data from digital asset manager CoinShares.

<