Sources: Chinese government blocks major MetaTrader 4 port

Internet port ‘443’, which is a port used for secure web browser communication and is a major connection methodology for MetaTrader 4, has been blocked by the government, with certain brokerages unable to connect to their MetaTrader 4 trading server. FinanceFeeds investigates

blockchain

Today, the Chinese Communist Party has convened in Beijing, and once again, the distribution of information and data via the internet and non-Chinese applications was high on the agenda.

So high on the agenda, in fact, that the government has now blocked access to Skype and WhatsApp, two very popular messaging services, so that access is now extremely restricted from within mainland China.

This was inevitable, and FinanceFeeds made a full report on this today, which can be read by clicking here.

Whilst this perhaps makes sense, as WeChat is now the de facto method of communication between Chinese businesses, and has increasingly been an equally vital communication means for businesses outside China when working with Chinese partners, a further and more grave situation has occurred today also.

FinanceFeeds has received several communications from brokerages in mainland China which have service from suppliers outside of China, stating that the HTTP protocol over TLS and SSL, known commonly as ‘443’, which is a port used for secure web browser communication and is a major connection methodology for MetaTrader 4, has been blocked by the government.

This is a port which is used to connect MetaTrader 4 to trading servers, hence several brokers are now unable to connect from within mainland China.

One of the facets of port 443 is that data transferred across such connections is highly resistant to eavesdropping and interception, hence it is more difficult (although not impossible given China’s sophisticated firewall system) for the government to monitor the flow of data and trading dynamic between Chinese companies and their overseas suppliers given this topography.

Moreover, via the use of port 443, the identity of the remotely connected server can be verified with significant confidence. Web servers offering to accept and establish secure connections listen on this port for connections from web browsers desiring strong communication security.

Once established, web browsers inform their users of these secured connections by displaying an icon — a padlock, an unbroken key, etc. — in the status region of their window. FinanceFeeds was established by experts in the field of institutional connectivity, thus this is a protocol on which our level of understanding is very high.

This is ideal when operating in a free market, however by blocking it, China rids itself of the lack of transparency and ability to monitor the traffic, but also creates a complete inability for some firms to operate their trading platforms.

FinanceFeeds can verify that this restriction has not affected all users of MetaTrader 4 in China, as currently, brokerages which are using MetaTrader 4 and are being supplied with liquidity and connectivity by Western firms with a Chinese base with all of their trading infrastructure hosted on Chinese servers are still operational, and given the government’s ability to scan data at server and hosting level within China, it is likely that these will never be affected.

Conversely, brokerages using connectivity partners or white label providers with no Chinese presence at all risk being completely disconnected from their trading server.

One firm in China explained to FinanceFeeds today “Our clients are fine for the moment, but we are making a back up plan immediately.”

The nature of the usage of the port by brokerages has traditionally been for MetaTrader 4 terminal communication, hence it is vital for the operation of a retail brokerage, however it is clear that China’s government has realized the freedom of information transfer that it provides.

FinanceFeeds will continue to monitor this and report on it as it continues, and will also be happy to advise brokerages on how to mitigate this, should the need arise.

One thing is clear, however, that being the absolute necessity for Western brokers, providers and vendors to have a Chinese entity which is hosted, partially owned and operated from within China.

Those who have already done so and are established within the mainland will stand in very good stead indeed.

Read this next

Industry News

ASIC cancels/suspends AFS license of AFSL Group and Quantum Funds Management

ASIC canceled the AFS license of AFSL Group because it failed to lodge statements and audit reports and it did not maintain AFCA membership. The Australian regulator suspended Quantum because it does not have the required professional indemnity insurance coverage.

Executive Moves

BidX Markets hires Shaun French as Research Analyst – Multi Asset

“We believe with his background in the Financial Markets and being based in Dubai, he will be able to provide our clients with access to outstanding research, while also being in a great location to help support our international clients base which is growing at a rapid pace’’.

Institutional FX

Nasdaq migrates US options exchange to AWS with +10% performance in round-trip latency

Nasdaq has announced the successful migration of the core trading system of Nasdaq MRX – one of its six U.S. options exchanges – to Amazon Web Services (AWS).

Institutional FX

TraditionData launches oil swaps pricing data at a critical time in OTC oil traded markets

TraditionDATA has announced the release of a new proprietary Oil Swap Model (OSM) which brings further visibility into illiquid and opaque oil markets.

Technology

TNS connects to Tel Aviv Stock Exchange (TASE) as market data vendor

“This latest exchange connection allows TNS to provide access to approved recipients, including exchange members and market data vendors. This project includes market data for TASE’s equities and increases the number of market data feeds we now offer globally.”

Executive Moves

Cowen Digital taps ex-Blockchain.com Taylor S. Cable to lead Europe and Asia operation

“Cowen Digital is a pioneer in delivering institutional grade access to the digital asset ecosystem and I am very excited to join the team at this pivotal time to grow our presence in Europe and Asia.”

Industry News

ASIC sues American Express Australia for lack of TMD on credit cards

“ASIC has now taken multiple actions under the design and distribution regime, including issuing over 20 interim stop orders. This regime turned a new page in the regulation of financial products in Australia and is intended to deliver better outcomes for consumers. It is a priority for ASIC to maximize these increased protections and see the long-term benefits of the DDO regime realized.”

Institutional FX

Eurex reports mixed volumes for November 2022

Deutsche Börse’s derivatives-focused exchange, Eurex today said its total traded derivatives contracts grew by 10 percent in November, from 68.6 million to 75.3 million compared to the same month last year.

Digital Assets

AAX’s Nigerian customers storm local office amid withdrawal halt

According to the Nigerian media, angry consumers of the troubled crypto exchange AAX had stormed its local office hoping they can get their money back after the firm halted operations earlier in November.

<