Prop Firm My Forex Funds and the CFTC Are Probably Negotiating a Settlement
There is a high probability that a settlement deal is being negotiated between the proprietary trading firm My Forex Funds and regulators in the US and Canada, Finance Magnates learned exclusively. The possible negotiation follows lawsuits filed against the firm and its CEO, Murtuza Kazmi, by the Commodity Futures Trading Commission and the Ontario Securities Commission.
The company's legal fight with the CFTC has disrupted the proprietary trading industry, prompting other firms to swiftly modify language on their websites. Many have added terms such as "simulated" and "virtual" to clarify the nature of their services. The CFTC initially charged My Forex Funds and Kazmi with fraud at the end of August 2023, alleging the company generated at least $310 million in fees from its proprietary trading business.
The US Securities and Exchange Commission has confirmed the looming departure of its Chair Gary Gensler, set for January 20, 2025, interestingly coinciding with President-elect Donald Trump's inauguration.
On his campaign trail, Trump promised the crypto community to fire Gensler, who was known for his stringent stance on the sector's regulations. Gensler's tenure, which began in April 2021, was marred by challenges such as the GameStop saga and volatile crypto markets.
Bitcoin has grown to become one of the most traded digital assets in the world. Its trading volume now reflects the immense interest in this cryptocurrency, from institutional investors to retail traders. In October 2024, trading volumes reached some of the highest levels this year. Compared to 2023, there was an increase of over 80%, with some exchanges experiencing growth up to 250%.
Bitcoin's trading volume refers to the total amount of Bitcoin bought and sold on exchanges within a specific time period. It's a key metric in the cryptocurrency market, offering insights into liquidity, demand, and overall market health. Bitcoin trading volumes can reach all-time highs during periods of market surges or significant news events.
eToro, which offers both CFDs and physical crypto trading, revealed to Finance Magnates that the total value of the newly opened Bitcoin positions jumped by more than 300% in the first two weeks of November compared to the first two weeks of October. While the volume of crypto CFDs on Pepperstone also jumped over 3 times after the US elections, Axi confirmed doubling its figures.
For both Pepperstone and Axi, the crypto market rally induced by Donald Trump's victory as the 47th president of the United States only boosted the already growing demand for crypto trading on their platforms. Pepperstone, an Australia-headquartered broker, revealed that its client trading volumes were already increasing into the US election.
Bitcoin's price predictions are back with a vengeance, and the $100K milestone is the glittering prize that has everyone's attention. Among the experts, Michael Saylor, the ever-optimistic face of MicroStrategy, believes Bitcoin could break this barrier by the end of 2024. His company continues to hoard BTC like it's going out of style, with investors clamoring for more exposure to the digital asset.
Meanwhile, Cathie Wood of Ark Invest is going acapella in the bullish choir. Wood predicts that Bitcoin "has a long way to go", citing institutional adoption. In her view, Bitcoin is more than a speculative asset, it's a hedge against economic turbulence and fiat currency instability.
Italy's lawmakers are opposing government plans to increase capital gains taxes and widen the scope of its crypto assets. The proposals, central to Prime Minister Giorgia Meloni's 2024 budget, are being criticized for potentially stifling innovation and affecting smaller businesses.
Economy Minister Giancarlo Giorgetti proposed raising cryptocurrency capital gains taxes from 26% to 42%, aligning them with other financial income. However, some members of his ruling coalition are reportedly opposing the steep hike and suggesting capping the tax increase at 28%.
Social investing firm eToro obtained a license to offer its services in New York. In an interview posted on the NYSE LinkedIn page, eToro's Founder and CEO, Yoni Assia, highlighted the importance of the latest approval for its expansion plan in the region.
"We are very excited to launch eToro in New York, where customers will be able to trade stocks and options on a wrap. Our global customers can trade cryptocurrencies alongside commodities and indices as well, and we are excited to have this milestone of enabling eToro to our New York customers," Assia said.
Revolut Ltd will start offering trading of UK and EU-listed stocks in 2025. The company recently received approval from the Financial Conduct Authority (FCA) to operate as an investment firm. This approval allows Revolut to expand its services.
According to Yana Shkrebenkova, the company's head of wealth and trading in the UK, Revolut had been developing the necessary technology before obtaining the license. The trading license will enable Revolut to work with more brokers and expand its UK customer base.
ICM.com, a global financial technology firm, obtained a regulatory license from the Financial Services Authority in Seychelles. This development brings the number of jurisdictions where the company is regulated to seven, including the FCA in the UK, FSRA in Abu Dhabi, FSC in Mauritius, FSA in South Africa, and ARIF in Switzerland.
Seychelles is gaining traction as a strategic location for brokerage operations, positioned between Africa, Asia, and the Middle East. The new license supports ICM.com's efforts to enhance its regulatory coverage and expand its global services. Established in 2009 in the UK, ICM.com provides access to over 5,000 trading instruments for retail and institutional clients.
The trading revenue of CMC Markets in the six months between April and September 2024 increased by 50 percent to £131.3 million. It also confirmed that client onboarding with Revolut began following a soft launch earlier this year. Finance Magnates interviewed two CMC executives earlier, who explained the details of the Revolut deal.
Returning to the numbers, the London-headquartered broker also earned £19.9 million from investing net revenue and another £23.4 million from interest income. Overall, its net operating revenue rose to £177.4 million, 45 percent higher than the corresponding half of the previous fiscal year and in line with its previous projection of £180 million.
Financial services firm StoneX Group Inc. reported robust growth in its FX/CFD trading business for the fourth quarter, with revenues climbing 7% to $84.7 million compared to $79.2 million in the same period last year. In the fiscal year 2024 (FY24) ending September 30, 2024, revenues in the FX and CFD segments exceeded $316 million, marking a 21% increase from the $262 million reported the previous year.
The company's self-directed retail segment, which handles most of its forex and CFD operations, saw particularly strong momentum. Daily trading volumes remained steady at $11 billion, while revenue per million traded increased 8% to $122, reflecting improved pricing efficiency and client engagement.
Spreadex, a UK-based provider of sports and financial spread betting services, achieved strong financial results for another fiscal year ending on 31 May 2024. It reported a net profit of over £32.4 million on revenue of £103.26 million, according to the latest Companies House filing.
Revenue increased by 16.2 percent compared to the previous fiscal year, while net profit rose by 15 percent. Pre-tax profits amounted to £42.2 million, 20 per cent higher than FY23. Established in 1999, Spreadex is the only company in the UK offering both sports and financial spread betting services.
Cyprus Securities and Exchange Commission withdrew the license of Reliantco Investment Limited, an entity operating UFX.com. The license was suspended reportedly because the entity has not provided any investment service in the past six months.UFX was a retail broker providing forex and contract for difference (CFD) services but now appears to have been closed down.
Last year, the company's website stated that it no longer offered investment services for users in several locations. Early last year, the broker also blocked users from opening new accounts and renounced its CIF license. CySEC's registry reportedly showed that the watchdog was examining the company's "voluntary renunciation of the authorization."
The Cyprus Securities and Exchange Commission (CySEC) announced the withdrawal of two Cyprus Investment Firm (CIF) authorizations. On 11th November 2024, CySEC revoked the CIF authorization of Arumpro Capital Ltd. This decision follows the company's explicit renouncement of its authorization under the Investment Services and Activities and Regulated Markets Law of 2017.
In a statement on their website, Arumpro Capital Ltd said, "We regret to inform you that Arumpro Capital Ltd has made the difficult decision to renounce its license and cease offering investment services and activities. We value our customers and investors and appreciate the trust you have placed in us over the years."
New research from eToro, conducted in partnership with Nasdaq, revealed notable differences between US and UK retail investors regarding their motivations, openness, and investment habits. The study, which surveyed 2,000 retail investors across both countries, highlighted distinct trends in their behaviors and goals.
The study by eToro and Nasdaq highlights differences between US and UK retail investors, particularly in their approach to discussing and sharing investment knowledge. While both markets have seen growth in retail investing, there are notable differences in openness and engagement.
Geopolitical worries over Ukraine spiked the Fear Index as stocks tumble, bonds rally, and traders brace for a rocky ride. Just when you thought markets had seen it all, Ukraine's geopolitical tensions returned to rattle investors. Yesterday, Wall Street's VIX Fear Index, a barometer for market volatility, spiked to levels not seen in over a year, heading up by almost 6%.
This wasn't your average bad day. It was panic in real-time. The trigger? Escalating fears that Russia might deploy tactical nuclear weapons, a move that could irreversibly escalate the war and its economic ramifications.
Finance Magnates London Summit (FMLS:24) concluded an eventful 2.5 summit packed with panel discussions, keynote speeches, fireside chats, and more. This year, the trading industry's flagship event was much bigger and bolder. As per tradition, it was hosted at the iconic Old Billingsgate, located in the heart of London's business district.
FMLS:24 draws participants from countries and continents worldwide. With a crowd of C-level executives, marketers, company representatives, and traders, it offers the perfect opportunity to meet existing clients or network with potential ones. Additionally, companies can showcase their products and services at dozens of booths.
FMLS:24 concluded with its annual awards ceremony, bestowing the highest honors in the industry. Attendees gathered at Old Billingsgate to see which brands took home this year's coveted titles, capping off months of nominations, voting, and anticipation.
This year's London Summit drew plenty of attendees from several industries, including the fintech, payments, online trading, and crypto space. The event featured no shortage of big-name speakers, innovators, C-suite executives, and more, part of a two-day exhibition and content track. Find the full list of the awardees here.