OANDA, a global provider of FX and contract for difference (CFD) instruments, has announced its inclusion into the Australian CFD Forum, part of an initiative to fortify its regulatory standards, whilst protecting its retail clientele.
OANDA has been brokering some notable partnerships as of late, including one with MotiveWave’s trading platform to OANDA’s Marketplace. With much of the FX industry engulfed in a negative light in 2014 on account of an unraveling scandal, allegations of benchmark manipulation, etc., OANDA has taken the initiative to place its operations under greater transparency, via the Australian CFD Forum.
According to Louis Cooper, Managing Director, OANDA Australia, in a recent statement on the announcement, “We take regulations seriously and we are a strong advocate of high regulatory standards. As a company with a global presence and operations, we adhere to the strictest regulatory frameworks in all countries and jurisdictions where we operate, and we want to see the same global standards implemented here in Australia to protect retail investors.”
Viberate Teams Up with Blockparty to Deliver World’s First Live Event NFTGo to article >>
In joining the CFD Forum in Australia, OANDA joins a crusade for more stringent government-enforced regulations that ultimately seek to curb illicit practices and instill a sense of compliance on client funds. At the present, only Australia and Cyprus allow CFD providers to utilize their respective client funds for operational needs, making the involvement of the CFD Forum all the more noteworthy for OANDA.
“While Forum members do ensure the full segregation of client moneys, the existing Australian regulation leaves some loopholes when it comes to the use of those funds for other purposes. I know this issue has been extensively examined by regulators and the government, and we hope that there is legislative action in the near future to safeguard investors. We must ensure Australia’s CFD and FX markets and trading activities are underpinned by a strong regulatory base and the highest level of retail trader protection,” added Cooper.
According to Tamas Szabo, Chairman of the Australian CFD Forum, in an accompanying statement on OANDA’s inclusion, “I am pleased to welcome Louis Cooper and look forward to his thoughtful contributions. We welcome OANDA to the Forum, and are currently in discussions with additional brokers. Together, we are working to transform trader’s rights in Australia.”