T0BY
counterparty
- Joined
- 15 December 2014
- Posts
- 79
- Reactions
- 17
Brokers advertising that they pass all orders onto their liquidity providers should include small print - "we may or may not have a financial interest in our liquidity providers b-book".
- Joined
- 17 June 2009
- Posts
- 91
- Reactions
- 0
Hi Everyone,
While I can't comment on the NFA or CFTC complaint specifically due to the nature of our settlement, I can say that we have settled with the NFA and CFTC without admitting or denying any of their allegations or claims. I can also say that Effex Capital is no longer pricing FXCM's NDD forex price feed. It's worth noting that FXCM would not have suffered more than $200 millon dollars in losses during the SNB flash crash had it been taking the other side of client trades – unlike so many of the DD firms in the industry.
Part of our settlement with the NFA and CFTC was to close our US subsidiary, but there will be no changes for clients outside of the US.
Since FXCM US has not been a contributor to overall profits for the firm over the past few years, FXCM will target significant cost cutting by closing the US entity. Specifically, withdrawing from this business will free approximately $52 million in capital. We will use the proceeds from any sale of the US accounts, as well as the large amount of regulatory capital currently tied up, to reduce the balance of our loan from Leucadia.
With the reduction of this loan balance, along with sales of non-core assets that were previously announced, FXCM could be in a position to fully pay off the Leucadia loan before the end of this year. With this exit, FXCM will be in a better position to service our international customers and focus on our profitable subsidiaries including FXCM Australia.
Our full financials can be found here and we will announce our Q4 and full year 2016 financials in the next few weeks.
I can also discuss with you FXCM's execution practices outside of the US. FXCM uses 16 liquidity providers to create a best bid best offer price stream for clients. LPs selected to price retail clients are forced to adhere to an extremely high standard of execution beyond just price – including consistently low rejection rates, low latency, minimum quote sizes and high fill ratios even during market events.
We have made our execution study public in the UK which can be viewed here and is a transparent comparison of FXCM's actual execution vs top tier futures brokers and the interbank market.
While I can't comment on the NFA or CFTC complaint specifically due to the nature of our settlement, I can say that we have settled with the NFA and CFTC without admitting or denying any of their allegations or claims. I can also say that Effex Capital is no longer pricing FXCM's NDD forex price feed. It's worth noting that FXCM would not have suffered more than $200 millon dollars in losses during the SNB flash crash had it been taking the other side of client trades – unlike so many of the DD firms in the industry.
Part of our settlement with the NFA and CFTC was to close our US subsidiary, but there will be no changes for clients outside of the US.
Since FXCM US has not been a contributor to overall profits for the firm over the past few years, FXCM will target significant cost cutting by closing the US entity. Specifically, withdrawing from this business will free approximately $52 million in capital. We will use the proceeds from any sale of the US accounts, as well as the large amount of regulatory capital currently tied up, to reduce the balance of our loan from Leucadia.
With the reduction of this loan balance, along with sales of non-core assets that were previously announced, FXCM could be in a position to fully pay off the Leucadia loan before the end of this year. With this exit, FXCM will be in a better position to service our international customers and focus on our profitable subsidiaries including FXCM Australia.
Our full financials can be found here and we will announce our Q4 and full year 2016 financials in the next few weeks.
I can also discuss with you FXCM's execution practices outside of the US. FXCM uses 16 liquidity providers to create a best bid best offer price stream for clients. LPs selected to price retail clients are forced to adhere to an extremely high standard of execution beyond just price – including consistently low rejection rates, low latency, minimum quote sizes and high fill ratios even during market events.
We have made our execution study public in the UK which can be viewed here and is a transparent comparison of FXCM's actual execution vs top tier futures brokers and the interbank market.
"Since FXCM US has not been a contributor to overall profits for the firm over the past few years, FXCM will target significant cost cutting by closing the US entity" Who cares! what is important is is your Non US operation going to be honest! about NDD!
Also "LPs selected to price retail clients are forced to adhere to an extremely high standard of execution"
CFTC was more worried about your US arms practices not that of your LPs! so pl don't divert the topic.. Good on ya CFTC tighten the screws.. make the markets more efficient... ASIC seems to be doing something in this space but perhaps not enough http://www.afr.com/business/banking...eaches-amongst-online-brokers-20160620-gpna4x
Also "LPs selected to price retail clients are forced to adhere to an extremely high standard of execution"
CFTC was more worried about your US arms practices not that of your LPs! so pl don't divert the topic.. Good on ya CFTC tighten the screws.. make the markets more efficient... ASIC seems to be doing something in this space but perhaps not enough http://www.afr.com/business/banking...eaches-amongst-online-brokers-20160620-gpna4x
That's OK, we can all read the many articles over internet.
Similar threads
