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 and on-Exchange 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:
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 and on-Exchange 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.
[gptAdvertisement]
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:
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.
58% of UK Investors Choose Professional Guidance over 'Finfluencers’
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
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#fmas #fmas24 #fmevents #networking #finance #africa
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
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#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
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Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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