Fazzaco Weekly Digest: Implicit "Sanctions" from FCA; HYCM Europe Relinquishes CIF License; Client Account Profit/Loss Ratio of 31 Brokers in March 2024
Last week, the financial services industry welcomed a fresh influx of players. Louay Amhaz, previously the Director of Business Development at oneZero, revealed the launch of a new company with a focus on Forex and CFD liquidity. Meanwhile, James Glyde, former Chief Commercial Officer of Spotware, introduced a new proprietary trading brand to the market.
In a separate development, the European subsidiary of renowned brokerage HYCM made an announcement stating its voluntary decision to relinquish its CIF license and cease providing services to customers within the EU. On the other hand, the multi-asset brokerage brand Trade.com said that it had obtained an Italian regulatory license, allowing it to operate locally. These developments highlight the dynamic and ever-changing competitive landscape within the financial trading industry.
Last month, the British online trading platform Capital.com halted new customer registrations for its UK entity. According to Fazzaco analysis, this move may be connected to an implicit "sanction" initiated by the UK FCA.
Furthermore, financial regulators have recently intensified their focus on crypto companies. The digital asset exchange KuCoin is facing a lawsuit from the CFTC for engaging in unregistered derivatives trading. In addition, the US SEC is seeking $2 billion in penalties from Ripple Labs for improperly selling some tokens to investors.
Here are the related details, as well as some of the most read forex, crypto, prop trading, and liquidity news pieces and articles from Fazzaco over the last week.
1. Listen to the Article: Implicit "Sanctions" from FCA - Behind Capital.com's Suspension of UK Clients
Fazzaco reported that as of March 15, the UK-based online trading brokerage Capital.com has pressed pause on its new UK client onboarding. Attempting to open a new account on the Capital.com website now prompts UK users with a message popup stating, "we have decided to pause onboarding new clients in the UK for now." However, existing UK clients retain full access to their accounts and can continue trading uninterrupted.
With Capital.com offering minimal explanation beyond the popup window and no punitive notices issued by the Financial Conduct Authority (FCA) either, this situation likely stems from an implicit "sanction" initiated by the FCA. Similar situations have occurred previously, notably with Plus500.
2. Ex-oneZero Exec Louay Amhaz Starts New Forex and CFDs Liquidity Firm
Fazzaco has learned that Louay Amhaz, a seasoned FX professional with a decade of expertise in business development within the industry, has launched a new company called LP Prime, specializing in Forex and CFDs liquidity.
"I am beyond excited to share with my network the launch of our new venture, LP Prime! Crafted by industry leaders with extensive expertise in the financial industry and the dynamic world of FX & CFD trading, LP Prime emerges as a true trailblazer in the realm of global financial services," shared Amhaz in his latest LinkedIn post.
3. HYCM Europe Relinquishes CIF License, No Longer Serving EU Clients
Fazzaco has learned that HYCM (Europe), the European subsidiary of the multi-regulated Forex and CFD provider HYCM, is voluntarily surrendering its Cyprus Investment Firm (CIF) license.
In a statement on the company's website, HYCM (Europe) announced that it will no longer accept new customers or open new accounts for individuals based in the EU. Additionally, the European business will be terminating its services to all existing customers within the region.
4. Fazzaco Reports: Client Account Profit/Loss Ratio of 31 Brokers in March 2024
Fazzaco collected the data of profit/loss ratio of client accounts from 31 brokers in March 2023. The brokers we have in this month-on-month comparison remained the same as last month.
Among the 31 brokers this month, an average of 28.65% of client accounts achieved profits, while 71.35% of client accounts suffered losses. Compared with the average data in February 2024, the winning rate of client accounts increased by 0.10%.
5. Trade.com Goes Live in Italy with Local Regulatory License
Fazzaco learned that Trade.com, the multi asset brokerage brand operated by Trade Capital Holding, has acquired an Italian regulatory license and launched operations in the country.
The Italian business, run under the locally formed entity Trade Capital Italia SIM, which has received authorization as an investment services company from CONSOB, will provide services for both retail and professional clients. Local customers will be able to trade US and EU-listed equities. Looking ahead, the company plans to introduce CFDs services in the next two or three months.
The U.S. Financial Industry Regulatory Authority (FINRA) has begun disseminating individual transactions in active U.S. Treasury securities at the end of the day, raising the level of transparency in the market for these benchmark securities.
The information is available on a same-day basis for FINRA members and other professionals who subscribe to the new data product. It is also publicly available and free of charge on FINRA's website for non-professionals' personal, non-commercial use on a next-day basis. Starting April 1, FINRA will also begin offering historical data on a six-month delay.
7. KuCoin Charged by CFTC for Operating Unregistered Derivatives Business
The Commodity Futures Trading Commission (CFTC) yesterday announced it filed a civil enforcement action in the U.S. District Court for the Southern District of New York charging Mek Global Limited, PhoenixFin PTE Ltd., Flashdot Limited, and Peken Global Limited, which collectively operate a centralized digital asset exchange under the name KuCoin, with multiple violations of the Commodity Exchange Act (CEA) and CFTC regulations.
The complaint charges KuCoin illegally dealt in off-exchange commodity futures transactions and leveraged, margined, or financed retail commodity transactions; solicited and accepted orders for commodity futures, swaps, and leveraged, margined, or financed retail commodity transactions without registering with the CFTC as a futures commission merchant (FCM); failed to diligently supervise its FCM activities; operated a facility for the trading or processing of swaps without registering with the CFTC as a swap execution facility (SEF) or designated contract market (DCM); and failed to implement an effective customer identification program (CIP).
Subscribe Now
