After in May last year when FXDD US sold its retail customer accounts to FXCM, the company announced that it has applied for withdrawal of its introducing broker license with the National Futures Association (NFA).
The decision does not affect the business of FXDD Global in any way as the company’s US subsidiary is a separate entity.
After the withdrawal of the US subsidiary from the tough regulatory environment enforced in the United States by the NFA, FXDD has been focusing on its international business. The US watchdog has been vigilantly imposing fines on the company even after its withdrawal from its jurisdiction.
Going Past the Great Wall: Things to Consider When Entering the Asian MarketGo to article >>
Provided the the regulator approves the company’s voluntary application for withdrawal, FXDD US will no longer be a regulated entity in the United States freeing up capital.
FXDD Global Chairman, Emil Assentato, has commented in the announcement, “We believe this move will allow us to deploy our capital reserves in a more efficient manner and speed the growth of our international business.
Our decision to sell our retail accounts in the United States and focus on international markets has helped us grow considerably, and the withdrawal of our US IB license is our next step to further drive international expansion.”
According to estimates made by Forex Magnates, the company lost close to $7 million in the aftermath of the Swiss franc debacle. The application for a license withdrawal happens only a few weeks after the ‘black swan’ event which shook the foreign exchange market.