Shifting Regulatory Sands and a $1.3 Trillion Shadow

by Avi Mizrahi
  • FXDD, Tradency, ADS Securities, TradingView, FXCM and more are among the firms that appeared in last week's top stories.
Shifting Regulatory Sands and a $1.3 Trillion Shadow
Finance Magnates

During the passing week the most interesting stories from the Online Trading industry included the different regulatory hardships that brokers are facing in different parts of the world. Meanwhile, technological cooperation continued to advance and one company put a figure on one of the major problems in the industry since the events of the SNB crisis.

The new world of online trading, fintech and marketing – register now for the Finance Magnates Tel Aviv Conference, June 29th 2016.

Diminishing Options in Israel

On Monday we published an interview with Mr Tzah Druker, the head of the Israeli Trading Arena Association, which represents the industry in its dealings with the regulator, to hear how he expects the process to continue.

Druker says that due to the way the ISA chooses to interpret capital requirements, brokers will find it very hard to comply, and out of the 21 firms that started the licensing process (see chart at the bottom of the article) only a handful will remain at the end.

Showcasing the state of despair, this is how he described his role: “My job is to make sure there will be companies left in the market after the regulations will come into effect.”

French Ban in 2016?

On Tuesday we reported that the French national regulator, the Autorité des Marchés Financiers, intends to introduce a ban on online advertising for forex and binary options brokerages.

The country is preparing a draft of regulations that will forbid active advertisement of risky financial trading products online. The draft has been a long time coming, however its implementation would be difficult to say the least.

FXDD First to Adopt RoboX

On Wednesday a new synergy was announced by online foreign exchange trading provider FXDD Global, and automated trading pioneer technology provider Tradency, which culminated in the launch of RoboX.

“FXDD Global is committed to creating the best trading environment for our clients and ensuring they have the technology they need to be successful,” said Lubomir Kaneti, director at FXDD Global.

$1.3 Trillion Gap

On Thursday we wrote that according to ADS Securities, the lack of solid prime of primes has contributed to difficulties for companies seeking a well capitalized entity to clear their trades with. Even worse – the market conditions have opened the market for some unethical companies in the industry that have claimed to have the solid balance sheet to handle flows from numerous brokers.

The Chief Operating Officer of ADS Securities London, Marco Baggioli, explains: “A daily global FX industry credit gap potentially affecting as much as US$1.3 trillion in daily volume is extremely significant and is changing the overall balance of the market. The lack of credit will lead to much wider spreads and increased pricing for all, from banks, to hedge funds, international businesses and all FX traders and, at the moment, no one is facing up to the problem.”

Trading with TradingView

On Friday it was revealed that TradingView is currently in the process of looking for beta testers of the company’s connectivity with FXCM. In order to connect to the brokerage, TradingView is using an API from Danish trading software development company Tradable.

TradingView is aiming to enable for its followers trading from the chart, a feature that is very likely to be introduced to the White Labels of TradingView. With the limitations of a charting solution, the software has not been able to fully engage its user base due to lack of trading support.

During the passing week the most interesting stories from the Online Trading industry included the different regulatory hardships that brokers are facing in different parts of the world. Meanwhile, technological cooperation continued to advance and one company put a figure on one of the major problems in the industry since the events of the SNB crisis.

The new world of online trading, fintech and marketing – register now for the Finance Magnates Tel Aviv Conference, June 29th 2016.

Diminishing Options in Israel

On Monday we published an interview with Mr Tzah Druker, the head of the Israeli Trading Arena Association, which represents the industry in its dealings with the regulator, to hear how he expects the process to continue.

Druker says that due to the way the ISA chooses to interpret capital requirements, brokers will find it very hard to comply, and out of the 21 firms that started the licensing process (see chart at the bottom of the article) only a handful will remain at the end.

Showcasing the state of despair, this is how he described his role: “My job is to make sure there will be companies left in the market after the regulations will come into effect.”

French Ban in 2016?

On Tuesday we reported that the French national regulator, the Autorité des Marchés Financiers, intends to introduce a ban on online advertising for forex and binary options brokerages.

The country is preparing a draft of regulations that will forbid active advertisement of risky financial trading products online. The draft has been a long time coming, however its implementation would be difficult to say the least.

FXDD First to Adopt RoboX

On Wednesday a new synergy was announced by online foreign exchange trading provider FXDD Global, and automated trading pioneer technology provider Tradency, which culminated in the launch of RoboX.

“FXDD Global is committed to creating the best trading environment for our clients and ensuring they have the technology they need to be successful,” said Lubomir Kaneti, director at FXDD Global.

$1.3 Trillion Gap

On Thursday we wrote that according to ADS Securities, the lack of solid prime of primes has contributed to difficulties for companies seeking a well capitalized entity to clear their trades with. Even worse – the market conditions have opened the market for some unethical companies in the industry that have claimed to have the solid balance sheet to handle flows from numerous brokers.

The Chief Operating Officer of ADS Securities London, Marco Baggioli, explains: “A daily global FX industry credit gap potentially affecting as much as US$1.3 trillion in daily volume is extremely significant and is changing the overall balance of the market. The lack of credit will lead to much wider spreads and increased pricing for all, from banks, to hedge funds, international businesses and all FX traders and, at the moment, no one is facing up to the problem.”

Trading with TradingView

On Friday it was revealed that TradingView is currently in the process of looking for beta testers of the company’s connectivity with FXCM. In order to connect to the brokerage, TradingView is using an API from Danish trading software development company Tradable.

TradingView is aiming to enable for its followers trading from the chart, a feature that is very likely to be introduced to the White Labels of TradingView. With the limitations of a charting solution, the software has not been able to fully engage its user base due to lack of trading support.

About the Author: Avi Mizrahi
Avi Mizrahi
  • 2728 Articles
  • 10 Followers
About the Author: Avi Mizrahi
  • 2728 Articles
  • 10 Followers

More from the Author

Retail FX

!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|} !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}