Avail Trading Corp Files for Chapter 11 in California
- Avail Trading Corp filed for bankruptcy in the US while the UK business continues as a separate entity.
Proceedings are fast underway for a chapter 11 bankruptcy filing for the US OTC Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value. Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value. Read this Term and on-Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term futures introducing brokerage (IB) known as Avail Trading Corp, according to recent court filings..
Chapter 11 proceedings have been filed by Avail Trading Corp in the California Central Bankruptcy Court, case 2:16-bk-11648-DS, dated February 9th, with nearly 20 subsequent updates as motions are set to prepare the administrators. The next court date is marked for April 6th at the Los Angeles court house, with case judge Deborah J. Saltzman (and Elaine L. Garcia) presiding.
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Avail Trading Corp is planning to release a statement to address the development later today. It will include information regarding its UK clients, who trade under a separate entity and are not affected despite the common ownership.
From IB to bankruptcy
The firm’s two sole principals, brothers David and Jack Manoukian, are well-known industry veterans, who (in my opinion) appeared to run their IB more like a brokerage than an introducer. I remember first seeing their website and speaking with them nearly a decade ago.
They offered their own platforms, or white-labeled solutions, in addition to MT4, and offered both OTC forex and on-exchange futures. This separated them from the average IB shop, which helped them to survive - almost every other forex IB failed long ago in the US.
I am not sure of the main drivers causing Avail Trading Corp to file for a chapter 11, but the challenging environment for FX in the US was likely one of the underlying contributors.
NFA license up for sale?
The firm’s status with the NFA is still listed as active and approved in the midst of the chapter 11 filings, as IBs aren’t permitted to hold customer funds (although they do need to maintain net capital). If they were regulated as an FCM or FDM, a freeze or injunction by the CFTC may have been necessary to protect client funds.
After the bankruptcy, the NFA license could be acquired by another business along with other assets. On the other hand, those options might not be on the table - it depends on how the arrangement is structured, and on the creditor's rights.
According to people familiar with the developments, the company hopes to emerge reorganized for its US operation, which is still running business as usual despite the on-going proceedings.
David Manoukian filed an official form 106Sum with the court dated February 23rd, listing nearly $1.75 million of assets, and just over $1.5 million of claims from creditors for both secured and unsecured assets - one example of the many filings related to this case since the initial filing date.
An excerpt of the form can be seen below listing the following three entities:
Source: Public Court Filings
United States and United Kingdom
The regulatory landscape in the US had made it increasingly difficult not only for small brokerages and IBs but even for medium to large size firms to compete, as subsequent consolidations left only a few large players in the FX space. The futures side was also affected to a lesser degree.
Finance Magnates reached out to a support representative who said that the company's UK business was not affected. The FCA confirmed this status.
An FCA spokesperson explained that due to transparency and supervisory regulations Avail Trading Corp would need to make the FCA aware of any difficulty it was facing.
Shortly after publication, an Avail Trading Corp spokesperson confirmed to Finance Magnates that the firm's UK entity is a separate business and unaffected. The company expects to issue a press release on the developments.
Proceedings are fast underway for a chapter 11 bankruptcy filing for the US OTC Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value. Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest trading market by volume. According to the Bank of International Settlements (BIS) latest survey, the Forex market now turns over in excess of $5 trillion every day, with the most exchanges occurring between the US Dollar and the Euro (EUR/USD), followed by the US Dollar and the Japanese Yen (USD/JPY), then the US Dollar and Pound Sterling (GBP/USD). Ultimately, it is the very exchanging between currencies which causes a country’s currency to fluctuate in value in relation to another currency – this is known as the exchange rate. With regards to freely floating currencies, this is determined by supply and demand, such as imports and exports, and currency traders, such as banks and hedge funds. Emphasis on Retail Trading for ForexTrading the forex market for the purpose of financial gain was once the exclusive realm of financial institutions.But thanks to the invention of the internet and advances in financial technology from the 1990’s, almost anyone can now start trading this huge market. All one needs is a computer, an internet connection, and an account with a forex broker. Of course, before one starts to trade currencies, a certain level of knowledge and practice is essential. Once can gain some practice using demonstration accounts, i.e. place trades using demo money, before moving on to some real trading after attaining confidence. The main two fields of trading are known as technical analysis and fundamental analysis. Technical analysis refers to using mathematical tools and certain patterns to help decide whether to buy or sell a currency pair, and fundamental analysis refers to gauging the national and international events which may potentially affect a country’s currency value. Read this Term and on-Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term futures introducing brokerage (IB) known as Avail Trading Corp, according to recent court filings..
Chapter 11 proceedings have been filed by Avail Trading Corp in the California Central Bankruptcy Court, case 2:16-bk-11648-DS, dated February 9th, with nearly 20 subsequent updates as motions are set to prepare the administrators. The next court date is marked for April 6th at the Los Angeles court house, with case judge Deborah J. Saltzman (and Elaine L. Garcia) presiding.
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Avail Trading Corp is planning to release a statement to address the development later today. It will include information regarding its UK clients, who trade under a separate entity and are not affected despite the common ownership.
From IB to bankruptcy
The firm’s two sole principals, brothers David and Jack Manoukian, are well-known industry veterans, who (in my opinion) appeared to run their IB more like a brokerage than an introducer. I remember first seeing their website and speaking with them nearly a decade ago.
They offered their own platforms, or white-labeled solutions, in addition to MT4, and offered both OTC forex and on-exchange futures. This separated them from the average IB shop, which helped them to survive - almost every other forex IB failed long ago in the US.
I am not sure of the main drivers causing Avail Trading Corp to file for a chapter 11, but the challenging environment for FX in the US was likely one of the underlying contributors.
NFA license up for sale?
The firm’s status with the NFA is still listed as active and approved in the midst of the chapter 11 filings, as IBs aren’t permitted to hold customer funds (although they do need to maintain net capital). If they were regulated as an FCM or FDM, a freeze or injunction by the CFTC may have been necessary to protect client funds.
After the bankruptcy, the NFA license could be acquired by another business along with other assets. On the other hand, those options might not be on the table - it depends on how the arrangement is structured, and on the creditor's rights.
According to people familiar with the developments, the company hopes to emerge reorganized for its US operation, which is still running business as usual despite the on-going proceedings.
David Manoukian filed an official form 106Sum with the court dated February 23rd, listing nearly $1.75 million of assets, and just over $1.5 million of claims from creditors for both secured and unsecured assets - one example of the many filings related to this case since the initial filing date.
An excerpt of the form can be seen below listing the following three entities:
Source: Public Court Filings
United States and United Kingdom
The regulatory landscape in the US had made it increasingly difficult not only for small brokerages and IBs but even for medium to large size firms to compete, as subsequent consolidations left only a few large players in the FX space. The futures side was also affected to a lesser degree.
Finance Magnates reached out to a support representative who said that the company's UK business was not affected. The FCA confirmed this status.
An FCA spokesperson explained that due to transparency and supervisory regulations Avail Trading Corp would need to make the FCA aware of any difficulty it was facing.
Shortly after publication, an Avail Trading Corp spokesperson confirmed to Finance Magnates that the firm's UK entity is a separate business and unaffected. The company expects to issue a press release on the developments.