Ukraine Flags Two Prop Trading Firms in Latest Warning List

Ukraine's National Securities and Stock Market Commission (NSSMC) has added Alpine Funded and Aura Funded to its warning list, marking another move against proprietary trading firms. These two firms were among seven entities flagged last week, though the regulator did not provide specific reasons for their inclusion.

This is not the first time Ukraine has targeted the prop trading sector. In July last year, NSSMC issued a caution against Forex Prop Firm, followed by a warning about BDSwiss, a major CFD brokerage. The agency has labeled the latest additions as "dubious projects," a designation that aligns with broader regulatory scrutiny of the industry.

Alpine Funded, based in Switzerland, and Dubai-headquartered Aura Funded operate within a sector that has seen explosive growth in recent years. However, the model used by many prop firms—where traders pay to participate in evaluation programs rather than invest client funds—has drawn regulatory attention in multiple jurisdictions. Authorities in Belgium, Spain, and Italy have also taken positions on the sector, with Italy's Consob likening the industry to "video games."

With discussions about potential regulations taking place at the European level and other national regulators, such as those in India and the Czech Republic, weighing in, the future of the prop trading industry remains uncertain.