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Breaking: Just six months after launching retail FX in the US, Singaporean futures giant pulls out following SEC directive

Andrew Saks-McLeod, Head of Research and Analysis, ETX Capital

Just six months after Phillip Capital CEO Teyu Che Chern met with FinanceFeeds in New York to reveal exclusively that the Singaporean futures giant was about to enter the retail FX sector in North America, the company has decided to discontinue its service to retail FX traders. The company has today issued a notice to […]

Tradency Ophir Schultz

Just six months after Phillip Capital CEO Teyu Che Chern met with FinanceFeeds in New York to reveal exclusively that the Singaporean futures giant was about to enter the retail FX sector in North America, the company has decided to discontinue its service to retail FX traders.

The company has today issued a notice to its clients that it will be discontinuing retail FX activities following a notice from the Securities and Exchange Commission (SEC) which has dictated that no SEC broker dealer shall offer retail FX from July 31, 2016.

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Phillip Capital CEO Teyu Che Chern with Andrew Saks-McLeod in New York

Phillip Capital made the astute move of partnering with some prominent exchanges in Chicago in order to approach the US exchange traded futures market, and at the same meeting in New York, IntercontinentalExchange senior executives detailed to FinanceFeeds how this would work, and how IntercontinentalExchange had planned its acquisition of SMX in order to reciprocally approach the Asian futures market from within America.

Following the company’s decision to enter the retail FX market, FinanceFeeds reported that the company had intended to provide trading facilities via a wholly owned MetaTrader 4 brokerage to clients across North America.

Indeed, Phillip Capital’s corporate mainstay is exchange traded futures, however it had high hopes for its entrance into the retail FX market and a very strong capital base behind it.

Today, Lynette Lim, Co-CEO of Phillip Capital has stated

“The SEC’s decision is a big disappointment for us, as we had recently begun the soft launch of our forex offering,” said Lynette Lim, Co-CEO & Director of PCI. “With the financial stability and resources of the PhillipCapital Group, we had all the criteria to be a strong player in the forex market, where there has only been a handful of incumbents in the last six years.”

Ms Lim has written the following letter to clients:

Dear Customer,
I regret to inform you that due to a recent Securities and Exchange Commission (“SEC”) release, Phillip Capital Inc. being dually registered as a broker dealer and forex dealer member, will no longer be allowed to offer retail forex to US customers beginning July 31, 2016. Please see the SEC release here. In response to this notice, Phillip Capital Inc. will therefore stop trading for existing forex accounts and will not open any new forex accounts effective June 1, 2016. We are also unable to offer forex to retail customers of Introducing Brokers.
This is obviously a big disappointment for us, as we have only just started the soft launch of our forex offering. Given the financial stability and resources of the Singapore-based PhillipCapital Group of Companies (“PhillipCapital Group”) and global network, we felt that we had all the criteria to become a strong player in the forex market where there has only been a few incumbents in the last six years. We have spent almost two years integrating MT4, the most popular retail trading platform, to our back office system and as a result, customers were able to able to trade both forex and futures with one account.
With the current regulatory environment in the US, we have made a decision not to offer retail forex in the US anymore. However, the PhillipCapital Group will continue to offer retail forex in five remaining countries: London, Turkey, Singapore, Hong Kong and Australia. Visit www.PhillipFX.com for more information.
While we are not able to offer retail forex in the US now, we are still passionate about serving the needs of retail customers and thus will be focusing our efforts on securities and futures. Although we have only been able to serve your forex needs for a short period of time, we sincerely appreciate your business. If you have any further questions, please do not hesitate to reach out to me.
Best regards,
Lynette Lim
Director & Co-CEO
Phillip Capital Inc.
Photograph: Downtown Manhattan, New York. Copyright FinanceFeeds
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