Boston Prime Exposed as Alpari UK Clients Still in the Dark
by
Kenny Mariasin
Last week saw a bevy of allegations levelled at FXDD, KPMG keeping tight-lipped on Alpari UK's customer accounts, FXCM taking some safety measures FxPro's CEO sharing his vision for the future of the industry.
Last week was a mixed bag of news. Forex Magnates reported that allegations of foul play were being levelled at Boston Prime, the latest company to buckle under last month’s CHF squall.
Meanwhile, KPMG crumbled none-too-substantial tidbits to Alpari UK customers waiting desperately for real updates about the company’s insolvency process. However, FXCM seemed to chart a new, safer course with the discontinuation of a volley of high-risk currency pairs; and FxPro CEO Charalambos Psimolophitis, shared with us how his company survived Black Thursday and why he thinks that leverage isn't the problem.
Boston Prime Suspect
A recent court filing accompanied by a wealth of documentation revealed last week that a substantial amount of client funds were allegedly missing from Boston Prime and BT Prime. According to an affidavit from Forexware Head of Strategy and Director of Boston Prime and BT Prime George Popescu, FXDD, exclusive Liquidity provider to the Prime entities, underhandedly compromised the companies and their customers.
Among the accusations trained at FXDD, Popescu claims that it: adjusted trade prices causing client losses to the tune of $15 million dollars after Black Thursday; artificially increased the liability of the Prime entities by making adjustments in the liquidity provider’s favour; funnelled money from Boston Prime (regulated) to BT Prime (unregulated) and to FXDD; and charged the Prime entities unjustified fees and unknown mark-ups.
KPMG, special administrator to Alpari UK, released an update to clients and creditors last Monday, but only confirmed what many readers already knew. Among the confirmed information, KPMG announced that Alpari UK’s intellectual property had indeed been acquired by Andrey Dashin; 114 employees had resigned or been made redundant; and that the pricing of trades is not expected to impact clients who only held cash balances in their accounts at 9:30 am GMT on January 15 (and who entered no subsequent trades).
The special administrator also revealed that all of the institutions holding Alpari UK client money had been contacted and, as of the update last week, approximately £43.3 million (around 66% of the funds) was now under KPMG’s direct control.
The company announced that analysing of trades closed on and after Black Thursday continues and, until it’s completed, KPMG can’t confirm final client account balances. Given the complexity and regulation involved, it wasn't ready to give a timeline for completion.
Finally KPMG updated Alpari UK clients on its controversial claims portal, saying that development is progressing well (much to the frustration of many of our readers).
FXCM: Road to Recovery
Last week, FXCM revealed a number of welcome changes in the works at the company. For starters, the company unveiled a new version of its platform, aimed at delivering a new set of data for traders to work with (including real-volume indicators). It also importantly decided to discontinue a total of thirteen exotic currency pairs as of February 20, ones more prone to rampant fluctuations of volatility given any currency floors, pegs or bands in place. For a list of the pairs, head here.
FxPro CEO: Leverage Not the Real Issue
FxPro CEO Charalambos Psimolophitis took some time last week to share with Forex Magnates how his company survived Black Thursday. He also shared why he thought the discussion about leverage in the wake of January’s tempest is misguided:
“One of the implications may be that regulators start placing an undue amount of attention on leverage…In my view this would be a mistake as it runs counter to the demands that traders themselves have made on the industry…I can’t stress enough that leverage was not the real issue here...”
Asked what he thinks would be a good direction going forward, Psimolophitis said that some sort of hybrid arrangement between agency execution and market making would be ideal, one where brokers can “continue to guarantee no conflicts of interest while also mitigating the impact of such outlier events.”
Last week was a mixed bag of news. Forex Magnates reported that allegations of foul play were being levelled at Boston Prime, the latest company to buckle under last month’s CHF squall.
Meanwhile, KPMG crumbled none-too-substantial tidbits to Alpari UK customers waiting desperately for real updates about the company’s insolvency process. However, FXCM seemed to chart a new, safer course with the discontinuation of a volley of high-risk currency pairs; and FxPro CEO Charalambos Psimolophitis, shared with us how his company survived Black Thursday and why he thinks that leverage isn't the problem.
Boston Prime Suspect
A recent court filing accompanied by a wealth of documentation revealed last week that a substantial amount of client funds were allegedly missing from Boston Prime and BT Prime. According to an affidavit from Forexware Head of Strategy and Director of Boston Prime and BT Prime George Popescu, FXDD, exclusive Liquidity provider to the Prime entities, underhandedly compromised the companies and their customers.
Among the accusations trained at FXDD, Popescu claims that it: adjusted trade prices causing client losses to the tune of $15 million dollars after Black Thursday; artificially increased the liability of the Prime entities by making adjustments in the liquidity provider’s favour; funnelled money from Boston Prime (regulated) to BT Prime (unregulated) and to FXDD; and charged the Prime entities unjustified fees and unknown mark-ups.
KPMG, special administrator to Alpari UK, released an update to clients and creditors last Monday, but only confirmed what many readers already knew. Among the confirmed information, KPMG announced that Alpari UK’s intellectual property had indeed been acquired by Andrey Dashin; 114 employees had resigned or been made redundant; and that the pricing of trades is not expected to impact clients who only held cash balances in their accounts at 9:30 am GMT on January 15 (and who entered no subsequent trades).
The special administrator also revealed that all of the institutions holding Alpari UK client money had been contacted and, as of the update last week, approximately £43.3 million (around 66% of the funds) was now under KPMG’s direct control.
The company announced that analysing of trades closed on and after Black Thursday continues and, until it’s completed, KPMG can’t confirm final client account balances. Given the complexity and regulation involved, it wasn't ready to give a timeline for completion.
Finally KPMG updated Alpari UK clients on its controversial claims portal, saying that development is progressing well (much to the frustration of many of our readers).
FXCM: Road to Recovery
Last week, FXCM revealed a number of welcome changes in the works at the company. For starters, the company unveiled a new version of its platform, aimed at delivering a new set of data for traders to work with (including real-volume indicators). It also importantly decided to discontinue a total of thirteen exotic currency pairs as of February 20, ones more prone to rampant fluctuations of volatility given any currency floors, pegs or bands in place. For a list of the pairs, head here.
FxPro CEO: Leverage Not the Real Issue
FxPro CEO Charalambos Psimolophitis took some time last week to share with Forex Magnates how his company survived Black Thursday. He also shared why he thought the discussion about leverage in the wake of January’s tempest is misguided:
“One of the implications may be that regulators start placing an undue amount of attention on leverage…In my view this would be a mistake as it runs counter to the demands that traders themselves have made on the industry…I can’t stress enough that leverage was not the real issue here...”
Asked what he thinks would be a good direction going forward, Psimolophitis said that some sort of hybrid arrangement between agency execution and market making would be ideal, one where brokers can “continue to guarantee no conflicts of interest while also mitigating the impact of such outlier events.”
Interactive Brokers Posts Strong April Metrics, Daily Average Revenue Trades Soar 33%
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.
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.
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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
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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.
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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.
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