Trade360 surrenders ASIC license following pressure selling tactics

Rick Steves

Sirius Financial Markets, an ASIC-authorized over-the-counter (OTC) derivatives provider operating as ‘Trade360’, has surrendered its licence following an investigation by the financial watchdog.

The firm’s former executives, Jonathan Schneider and Oskar Pecyna, were handed eight-year bans, restricting them from controlling an entity that carries on a financial services business or performing any executive or management role in relation to a financial services business.

Sirius Financial Markets operated with the brand ‘Trade360’ and was found to have engaged an off-shore call center, Toyga Media Ltd (Toyga), to source clients to trade in high-risk contracts-for-difference (CFDs) and margin foreign exchange contracts products issued by Sirius Financial.

Trade360 client lost over $400,000

According to ASIC’s investigation, Toyga persuaded clients to trade using pressure selling tactics and provided clients with personal advice when Sirius Financial was not licensed to do so.

ASIC Commissioner Danielle Press said: ‘ASIC’s investigation uncovered concerning consumer losses from trading in CFDs, including a Sirius Financial investor, who had limited knowledge of the market, losing over $400,000 after being told CFDs were a safe investment.’

In addition to that, ASIC found that Sirius Financial failed to:

  • do all things necessary to ensure that the financial services covered by the licence are provided efficiently, honestly and fairly
  • take reasonable steps to ensure that its representatives comply with the financial services laws
  • have in place adequate arrangements for the management of conflicts of interest

The banned executives were found to have been involved in the breaches while also not being adequately trained or competent to be involved in the control of a financial services business.

Sirius Financial has decided to surrender its license and wind down retail and wholesale operations. The firm will cease providing financial services on 29 July 2022.

Previous enforcement actions by ASIC against OTC derivates providers have resulted in a $75 million penalty against AGM Markets and a $20 million fine against Forex CT.

It was last year that ASIC’s restrictions on CFD products came into effect. In April 2022, ASIC extended its product intervention order for a further five years to 23 May 2027 after a successful year for retail traders.

Reduced CFD leverage available to retail clients and restrictions on certain product features and sales practices since March 2021 have improved the trading environment for retail users, as shown by a recent ASIC report.

The order imposes restrictions on CFDs issued to retail clients, including: leverage ratio limits ranging from 30:1 to 2:1; standardisation of margin-close out rules; negative balance protection; and prohibitions on offering or giving of certain inducements.

Read this next

Retail FX

Interactive Brokers adds 680k accounts, daily trades hit two-year high

Interactive Brokers LLC (NASDAQ: IBKR) recorded 2.44 million daily average revenue trades (DARTs) in February 2024, marking a notable increase from the 2.2 million transactions observed in the previous month. This figure represents the highest DARTs reported in two years, indicating an 11 percent monthly surge and a 15 percent year-on-year rise.

Retail FX

Financial Commission adds Ultima Markets to membership roster

Multi-asset brokerage firm Ultima Markets, operating under the trading name Ultima Markets Ltd, has been granted membership of the Financial Commission, marking the most recent inclusion into the ranks of the self-regulatory organization.

Digital Assets

Bitcoin hits fresh record high amid massive short squeeze

Bitcoin has surged to record highs against both the euro and the pound, hitting €60,447 and £51,736 respectively on Coinbase. The primary cryptocurrency has seen an almost 7% increase in the past 24 hours.

Digital Assets

US court rules crypto trades as securities in Coinbase case

A US court ruled that trading crypto assets on platforms like Coinbase constitutes securities transactions.

Market News

Weekly Data: Oil and Gold: Brief Review before the NFP

This preview of weekly data looks at USOIL and XAUUSD where economic data coming up later this week are the main market drivers for the near short-term outlook.

Institutional FX

FXSpotStream reports lower volumes for February 2024

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for February 2024, which moved lower on a monthly basis.

Fundamental Analysis

Global FX Market Summary: EUR, USD, Gold March 4th,2024

US Dollar Weakness: The US Dollar (USD) is currently struggling to gain strength due to a combination of factors.

Technical Analysis

Bitcoin Technical Analysis Report 4 March, 2024

Bitcoin cryptocurrency can be expected to rise further toward the next resistance level 69000.00 (former multiyear high from January)


Finding Opportunity in Challenge: Why New Regulations Offer a Chance For Business to Get on Top of Data Management

The combination of CESOP, PSD3 and the PSR, has put businesses under new pressures. In this engaging article, André Casterman, Senior Advisor at Intix provides invaluable guidance on how companies can stay ahead of the curve.