According to an announcement on the company’s website, one of the smaller Financial Conduct Authority-regulated brokers, LQD Markets, has filed for bankruptcy protection under orders from the UK financial regulatory watchdog.
LQD Markets representatives could not be reached. The phone support numbers have been disconnected, while clients’ positions have been closed as the FCA mandated the firm to stop carrying on with any operations related to regulated activities.
According to the official message on the LQD Markets’ website, clients should be able to obtain more information by logging into their client accounts.
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Forex Magnates has learned that the company suffered losses of over a million dollars, as a meager clientbase forced it to rely heavily on one fund, whose owners are unknown.
This state of affairs has spurred LQD markets to look for an immediate buyer, offering several potential buyers a 50% stake in the company in exchange for as much as 500 thousand dollars. After at least one serious candidate backed away from the deal, the firm had no choice but to approach the regulator seeking guidance.
Last year, the company wrapped up its Cyprus operations and moved all of its business under the UK FCA-regulated entity. In the volatile aftermath of the drop of the Swiss franc floor, the jurisdiction of operation is becoming less and less relevant, the force majeure obstacle has wiped out capital from a number of companies.