In an exclusive report published earlier today, about Alpari US’s departure from the domestic market, an official response has been provided by members of the Alpari US team.
Operating in the North American spot FX markets has been difficult for financial services firms, as the recent hurdles imposed by the financial regulator have been driving business out of the country. Alpari US, a leading financial services firm offering multi-asset trading solutions, has re-addressed its corporate strategy for the Alpari US division. The firm will exit from the retail environment.
The broker follows in the steps of other significant players including, FX Solutions and GFT. The firm which has been operational since 2008, will focus its resources on its growing institutional FX product range, QuantumFX.
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In a notification to the press, the firm states, “The company will withdraw from offering FX to US-based retail clients, which is effective from today, 20 September, 2013. In addition, the company will withdraw from offering futures to US-based retail clients at a later date.”
Chief Executive Officer, Jermaine Harmon, spoke about the firm’s new strategy in response to the recent changes in the US industry, and said, “The US brokerage market continues to evolve through technological developments and changes in the regulatory environment. We have carefully considered the implications of these developments, refining our strategy and business model, to ensure that Alpari US is best placed to drive consistent, future earnings growth in the US. Our QuantumFX division will receive increased business focus and investment in new services.”
US regulators have been hitting out at firms relating to FX risk and dealing management matters. Earlier this week, FXDD, a US registered firm, was censured by the authorities for malpractice, because of the way it managed clients’ orders. Alpari US was under the regulatory radar, for inefficiencies in submitting reports to the NFA, for the Forex Transaction Reporting Execution Surveillance System (Fortress).