Pepperstone, an Australian online retail foreign exchange (FX) broker, has suspended trading across its UK trading arm, Pepperstone Limited, immediately halting operations for clients, according to a company notice.
The development follows on the heels of a period of sweeping changes in the UK for FX brokers, as dictated by its principle regulator, the Financial Conduct Authority (FCA). Late last year, the FCA announced a wide range of changes to leverage requirements and bonuses, which could be yielding a residual effect on Pepperstone, prompting a temporary suspension of its services.
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Such a move would explain its abrupt cessation of trading for clients as the broker tries to recalibrate its trading activities in line with the new regulations.
Earlier today clients received the following email from Pepperstone: “This email is to let you know that we are temporarily suspending trading in the UK. This trading suspension only affects your trading account and a small number of UK clients registered under Pepperstone Limited, Pepperstone’s FCA regulated entity.”