A month and a half after the first official publication by FIXI PLC on its website that it is closing its doors, the company is well on its way to refund its clients. The company is sending out withdrawals to its customers, Finance Magnates can confirm.
To date, there are no details as to what the reason for the FCA to freeze client funds was, but a positive resolution for the customers of FIXI is already good news. The broker ceased operations in the second half of December after the UK regulator imposed restrictions on the company and its business activities at the broker’s own request.
Some clients of FIXI PLC confirmed to Finance Magnates that they already safely received their funds.
Last week the firm sent out an email to its customers detailing its intentions to confirm final balances and start sending out wire transfers. Since the company contacted its customers only gradually, the wire transfers are also being sent out on a step-by-step basis.
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Consolidating European Market
After years of expansion in the industry and the mushrooming number of brokers offering similar solutions, a long-expected consolidation phase for the market finally started.
FIXI and Formax Prime were only two companies that decided to cease their regulated activities in the UK last month. The market’s shifting landscape is expected to result in a swirl of M&A activity this year.
Several executives with knowledge of the industry confirmed to Finance Magnates that they see significant potential for further consolidation in the industry. In the meantime, there is an increase in the number of companies looking to deliver high-leverage trading to clients in the EU.
While the regulated industry is poised to contract, new offshore brokers are entering the space, and some are even targeting EU-based clients. With the complex regulatory environment and the increased scrutiny over the industry, this could be a risky strategy for some market players.