It’s been a bit over six months since the restrictions on offering forex and CFDs in the French market kicked in. Brokerages operating in the country were forced to stop advertising their products by the Autorité des Marchés Financiers (AMF) after the Sapin 2 bill was voted into law in the French Parliament.
After a thorough examination of the market, JFD Brokers is launching a new product in France that clears it to advertise its services, as the marketing ban in France does not apply to brokers that are executing orders via a multi-lateral trading facility (MTF).
JFD Brokers, very active in France, has developed a tailored solution for the French market and is routing all orders to be executed via MTFs.
Commenting to Finance Magnates on the news, the CEO of the company, Lars Gottwik, said: “As a 100% STP/DMA broker, JFD has always been about running a business model based on commission revenues – unlike most of our competitors who are running a book.”
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“As our STP/DMA business model is very close (or almost identical) to an MTF, and due to the fact that we already handle a specific order flow for the last three years through specific MTFs, we took the decision to address the whole French market via an MTF setup,” Gottwik explained.
MTF Legal Interpretation Opens Doors to France
Elaborating on the regulatory hurdles presented by the advertisement ban, Gottwik said: “According to our legal interpretation, the measures of the French regulator will allow JFD Brokers to continue marketing in France as a broker executing on an MTF.”
JFD Brokers is not the only company that is working on delivering MTF execution to French clients. Last week, IG Group announced in its full year earnings report that the broker is developing a Multi-Lateral Trading Facility (MTF) for its European operations.
A spokesperson for one of the leading MTFs in the foreign exchange industry, which services a number of retail brokers, explained that the company’s brokerage clients need to make their own regulatory assessment in their given jurisdiction.
Gottwik expressed confidence about the French market: “Overall, we at JFD, consider France to be one of our core markets, where we see great potential going forward, especially by having a regulator which actively pushes for transparency.”