A Cayman Islands-based broker looks set to shut down in the coming weeks as regulatory authorities announced that it had entered administration.
Accountants from financial services firm KRyS Global have taken control of OneTRADEx according to a statement released by the Cayman Islands Monetary Authority (CIMA) late last Friday.
It is unclear as to exactly what has gone wrong at the broker, whose website, which is up and running, still appears to allow account openings.
In its statement, the CIMA said that it had appointed KRyS Global to assume control of the company’s affairs under securities and investments laws.
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Unable to meet obligations
The Cayman Islands regulator cited a specific law that enables it to take a number of different steps, including issuing fines or revoking a license, if it believes a company “is unable or appears likely to become unable to meet its obligations as they fall due.”
In the case of OneTRADEx, it seems the regulator decided to use its power to appoint an outsider to take control of the company’s affairs – KRyS Global. The financial services firm will, if it so chooses, be able to shut down OneTRADEx.
What the broker did to make the CIMA believe it would not be able to continue to meet obligations is unclear.
The company has been operational for almost a decade and is run by two Canadians with lengthy careers in the financial services industry.
Finance Magnates reached out to the CIMA for comment on this article but, at the time of publication, no reply was forthcoming.