FXDD US Applies for Withdrawal of Introducing Broker License with the NFA
According to a corporate announcement made by FXDD Global, the firm’s US unit has applied to withdraw its IB license
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.
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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.
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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.
so did fxdd comment on how much they lost during CHF black swan event?
ahahaha… is this kind of capital they are looking for to use to “expand their business”?
https://www.nfa.futures.org/nfamanual/NFAManual.aspx?RuleID=SECTION%205&Section=7
this is desperation at FXDD
FXDD will go bust next
My gots a feelin that they got bigga CHF losses than the random numbas that Forex Magnates pulled out of thin air. By scroungin for a few stacks of cash, me guess is that they will be “expanding their business” straight inta bankruptcy court.
Yes, that “color” that is the cause for the ongoing investigation in the first place 😉 ! EVZ is hovering around all time lows, too bad it launched relatively late in 2007 or early 2008 if I am not mistaken so we could compare it with previous periods of generally low FX volatility. Back to the “color” – a friend of mine was working in the bond trading department at a major investment bank, (one of the major London based institutions), he used to call their FX trading desk and trade the opposite of what they told him on his… Read more »
Yes, that “color” that is the cause for the ongoing investigation in the first place 😉 ! EVZ is hovering around all time lows, too bad it launched relatively late in 2007 or early 2008 if I am not mistaken so we could compare it with previous periods of generally low FX volatility. Back to the “color” – a friend of mine was working in the bond trading department at a major investment bank, (one of the major London based institutions), he used to call their FX trading desk and trade the opposite of what they told him on his… Read more »
The NFA is a big reason why many clients and firms lost money. Because the NFA took away the risk management tool known as hedging they exposed a lot of people and firms to unnecessary market risk. shame on the NFA for hindering the FX markets and its participants.
@John A
wtf are you talking about? If you want to reduce your risk, close your position.