MB Trading Fined $200,000 For Failing to Maintain Minimal Capital Requirements
Tuesday,14/05/2013|22:05GMTby
Adil Siddiqui
United States financial regulator fines MB Trading a FX broker for failing to meet minimal capital requirements. The broker had miss-appropriated funds for 17 months after the new rules were mandated.
The US Commodity Futures Trading Commission has issued a penalty of $200,000 to California based MB Trading, a FX broker, for failing to meet the regulators minimal financial requirement rules.
The fine comes on the back of the CFTC's investigation into the broker, a Futures Commission Merchants (FCMs) that offers retail off-exchange foreign currency trading, for not meeting the $20 million adjusted net capital brokerage firms have to maintain. In its findings the broker improperly included certain funds held in four accounts in its adjusted net capital computations. The CFTC found that after excluding those funds as required, MB Trading failed to meet its adjusted net capital requirements for 456 calendar days between October 18, 2010 and March 1, 2012.
The US OTC FX markets took a turbulent turn post new regulation in; Leverage, order rules (FIFO) and capital adequacy requirements. The new rules which were implemented after the 2008 global recession had a detrimental effect on the US market in so far as broker numbers and trader numbers were on the decline.
The new minimal capital requirements rules were effective from the 18th of October 18, 2010. The new framework was intended to protect individual investors that engage in the trading of FX. The rules state that regulated brokers classified by the CFTC as; RFEDs and/ or FCMs that offer or engage in retail Forex transactions must at all times maintain adjusted net capital of $20 million, or more in some circumstances, and hold enough assets to meet or exceed their total retail forex obligations to customers. The new rules impose several restrictions on the types of funds that firms can include in their adjusted net capital and asset computations.
Minimal capital requirements for OTC brokers is common across major regulatory bodies. In the UK firms who act as principal brokers in OTC contracts must maintain a minimal capital of seven hundred and thirty thousand Euros. Presently the Untied States requirements are the steepest across all regulators however new proposals by Turkey's financial regulatory, SPK, is set to be in-line with the US requirements.
MB Trading was part of a group of US based FX brokers that looked outside their home market to tackle the rule changes for FX markets. Several US brokers set up shop in the UK under the FSA where they were able to maintain leverage of 100 or 200 to 1 and have lower capital requirements.
The US Commodity Futures Trading Commission has issued a penalty of $200,000 to California based MB Trading, a FX broker, for failing to meet the regulators minimal financial requirement rules.
The fine comes on the back of the CFTC's investigation into the broker, a Futures Commission Merchants (FCMs) that offers retail off-exchange foreign currency trading, for not meeting the $20 million adjusted net capital brokerage firms have to maintain. In its findings the broker improperly included certain funds held in four accounts in its adjusted net capital computations. The CFTC found that after excluding those funds as required, MB Trading failed to meet its adjusted net capital requirements for 456 calendar days between October 18, 2010 and March 1, 2012.
The US OTC FX markets took a turbulent turn post new regulation in; Leverage, order rules (FIFO) and capital adequacy requirements. The new rules which were implemented after the 2008 global recession had a detrimental effect on the US market in so far as broker numbers and trader numbers were on the decline.
The new minimal capital requirements rules were effective from the 18th of October 18, 2010. The new framework was intended to protect individual investors that engage in the trading of FX. The rules state that regulated brokers classified by the CFTC as; RFEDs and/ or FCMs that offer or engage in retail Forex transactions must at all times maintain adjusted net capital of $20 million, or more in some circumstances, and hold enough assets to meet or exceed their total retail forex obligations to customers. The new rules impose several restrictions on the types of funds that firms can include in their adjusted net capital and asset computations.
Minimal capital requirements for OTC brokers is common across major regulatory bodies. In the UK firms who act as principal brokers in OTC contracts must maintain a minimal capital of seven hundred and thirty thousand Euros. Presently the Untied States requirements are the steepest across all regulators however new proposals by Turkey's financial regulatory, SPK, is set to be in-line with the US requirements.
MB Trading was part of a group of US based FX brokers that looked outside their home market to tackle the rule changes for FX markets. Several US brokers set up shop in the UK under the FSA where they were able to maintain leverage of 100 or 200 to 1 and have lower capital requirements.
iFOREX Adds Saudi and South Korean Equity CFDs as IPO Is Delayed
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
