Fazzaco Weekly Digest: The Funded Trader's Relaunch; Republic First Sold to Fulton Bank; Interactive Brokers Fined $475K by Nasdaq

Last week, several financial services providers released their latest quarterly trading figures, showcasing impressive performance by Acetop Financial, Northern Trust, Deutsche Börse​, and Hargreaves Lansdown.

The banking crisis continues, as another regional bank in the United States has failed, following the footsteps of Silicon Valley, Signature, and First Republic last year.

In the crypto sector, regulatory agencies around the world, including Europe, Russia, and South Korea​, have begun tightening regulations, leading to significant changes in the global crypto landscape.

After suspending operations for more than a month, The Funded Trader, a well-known proprietary trading platform, announced a corporate restructuring and plans to transfer its operations to an entity in the Cayman Islands. Fazzaco elaborated on the reasons behind this move in the article titled "The Funded Trader's Relaunch: In Another Place and In A Controversial Way". 

Here are the related details, as well as some of the most read forex, crypto, and prop trading news pieces and articles from Fazzaco over the last week. 

1. Compagnie Financière Tradition Hires Michel Everaert as Global Head of E-Commerce and Digitalization​

Compagnie Financière Tradition (CFT, or "Tradition"), one of the world's largest interdealer brokers in OTC financial and commodity related products, has appointed Michel Everaert as its new Global Head of E-Commerce and Digitalization. 

Everaert, an accomplished industry veteran, will join the company's senior management team and be responsible for overseeing its electronic initiatives and driving the transformation in its high-touch with high-tech customer driven strategy.

2. The Funded Trader's Relaunch: In Another Place and In A Controversial Way

According to Fazzaco News this week, the US-based prop firm The Funded Trader has announced it is undergoing restructuring and plans to transfer its operations to an entity registered in the Cayman Islands. As recently as the end of March, the company announced a suspension of all business operations, setting up a countdown timer on its website for the resumption of activities.

It's common knowledge that the proprietary trading industry suffered a devastating blow earlier this year due to MetaQuotes' crackdown on Grey Labeling, prompting many prop firms to migrate from MetaTrader to other platforms, with several firms ceasing operations altogether.

3. U.S. Regulators Seize Troubled Lender Republic First, Agree to Sell It to Fulton Bank​

U.S. regulators have seized Republic First Bancorp, opens new tab and agreed to sell it to Fulton Bank, underscoring the challenges facing regional banks a year after the collapse of three peers.

Philadelphia-based Republic First, a separate entity from First Republic Bank, which had abandoned funding talks with a group of investors, was seized by the Pennsylvania Department of Banking and Securities.

4. Russia to Enforce Crypto Restrictions, Exempting Miners and Central Bank Projects

Starting September 1, Russia will enforce strict restrictions on the general circulation of crypto assets such as Bitcoin. Only digital financial assets issued within its jurisdiction will be allowed.

Anatoly Aksakov, Chairman of the State Duma Committee on the Financial Market, leads this initiative. It is part of a broader governmental effort to control the crypto ecosystem amid rising geopolitical tensions.

5. EU Parliament Adopts New Rules to Tighten Crypto Regulation​

The European Parliament voted to adopt a new package of laws tightening money laundering and terrorist financing measures across the EU. The laws target large cash payments, crypto firms and football clubs, among others.

In addition to creating a single rulebook for the 27 nations that make up the European Union, the package approved on Thursday sets up an anti-money laundering authority based in Frankfurt to oversee the implementation of the relevant frameworks – particularly those the bloc deems as the "riskiest entities."

6. FCA Regulated Broker Acetop Financial Quadruples Revenue in 2023, Significantly Narrows Losses

Acetop Financial Limited, a Forex and CFDs brokerage firm authorised and regulated by the Financial Conduct Authority (FCA), experienced an outstanding year in terms of financial performance in 2023, with its revenue up about 320 percent, according to the firm's latest Companies House filing.

Specifically, Acetop Financial's revenue for 2023 jumped to £756,885 from £180,808 in 2022. In the meantime, the broker significantly narrowed its loss for the year to £13,151, compared to £334,640 in the previous year.

7. Interactive Brokers Fined $475K by Nasdaq for Supervisory Deficiencies​

Interactive Brokers (or "the Firm"), a leading US-based global electronic broker, has entered into a settlement agreement with Nasdaq to address issues related to its supervisory deficiencies. As part of the agreement, the Firm has agreed to pay a fine of $475,000 to resolve the matter.

As a result of investigation, Nasdaq Enforcement determined that during the Relevant Period, the Firm incorrectly processed five corporate actions due to a combination of system and supervisory deficiencies, in violation of Nasdaq Rule General 9, Sections 20(a) and 1(a). In addition, in certain scenarios, Interactive Brokers' risk management controls and supervisory procedures were not reasonably designed to prevent the entry of erroneous orders, in violation of Section 15(c)(3) of the Securities Exchange Act of 1934 ("Section 15(c)(3)"); Rules 15c3-5(b) and 15c3-5(c)(1)(ii); and Nasdaq Rule General 9, Sections 20(a) and 1(a).