The Financial Commission has launched a voluntary certification programme for proprietary trading firms, introducing an independent framework to assess firms against standards covering trading rules, payouts, risk management and dispute handling.

The new Prop Firm Certification programme extends the organisation's external dispute resolution services to the proprietary trading sector. Firms that meet the required standards following an independent review will receive certification and be allowed to display the Financial Commission's certification badge.

Certification Framework Adds Independent Market Oversight

Nikolai Isayev, Chief Operating Officer of the Financial Commission, said the proprietary trading sector has expanded rapidly and now requires independent standards. He said the programme applies "transparent rules, fair enforcement and clear payouts" to a market that has lacked "a credible, independent benchmark."

He added that it provides firms with "a realistic path to prove they play fair" while giving traders greater confidence.

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According to the organisation, firms are assessed through an evidence-based review of their rulebooks, evaluation criteria, payout policies, risk controls and dispute-handling practices. Certified firms will also be subject to ongoing monitoring and annual renewal.

Ruben Abitbol, Founder of RUBIK and a member of the programme's expert committee, said the industry needs "greater transparency and accountability." He added that decisions should be based on "facts and benchmarks, rather than pressure or perception."

Programme Sets Conduct Standards for Prop Firms

The framework is built around five principles: clear trading rules, consistent enforcement, transparent payouts, responsible risk management and access to the Financial Commission's independent dispute resolution process.

The organisation said the programme is designed to provide traders with an independent escalation process while also allowing firms to challenge claims involving abusive trading behaviour based on evidence.

Kathy Lien, Founder of Prop Trader Edge, described the initiative as "an important step" towards improving "clarity, consistency, and accountability" in the proprietary trading industry.