Finance Feeds logo

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.

Capture 1
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
Subscribe

Read this next

Retail FX

BDSwiss wins big at UF AWARDS LATAM 2024

The two award wins validate BDSwiss’ endeavors in the online trading sphere, especially when it comes to innovation, research, and education. 

Digital Assets

GSR and Virtu become the first to use EDXM for Crypto OTC trade settlement

“By mitigating counterparty risks, EDXM Global empowers our Members to navigate the complexities of trade settlement while reducing counterparty risks.”

Market News

The Hang Seng Index Surges Over 13% in 2 Weeks

Analysing the Hang Seng (Hong Kong 50 at FXOpen) chart on January 30th, we noted the price near a key support level marked by the lower boundary (in orange) of a long-standing channel dating back to 1995.

fXOPEN750
Retail FX

Scope Markets adds 23 Dubai-listed stocks CFDs

“Equity markets across the Middle East are flourishing right now, as asset owners look to leverage the benefits of wider share ownership.”

Digital Assets

Tradu launches crypto exchange with several perks

“At Tradu, we are real supporters of crypto. It’s a huge market with significant investor interest and as a true multi-asset trading platform, it’s important for us to offer our clients access to both traditional assets and new digital assets.”

Chainwire

Slash Vision Labs Unveils SVL Alpha-Base: A New Gateway to Exclusive Alpha Opportunities

Alpha-Base represents a significant leap forward in our mission to empower and engage our community.

Digital Assets

FinchTrade taps Fireblocks for crypto custody and connectivity

“Collaborating with Fireblocks is a game-changer. It fortifies our commitment to IT security and enables offering a diversified service portfolio.”

Industry News, Uncategorized

ISDA and AFME warn against UK FCA’s plan to expose firms under investigation

AFME and ISDA strongly oppose the FCA’s proposal for public announcements at the commencement of investigations. They argue that the proposal could lead to undue reputational damage and market instability, particularly when investigations may not result in any action.

Chainwire

Spectral Labs Joins Hugging Face’s ESP Program to advance the Onchain x Open-Source AI Community

Spectral is excited to announce its participation in Hugging Face’s Expert Support Program.

<
✖