Australia’s Retail Client Money Law: The Case for Registered Custodians in Forex LeapRate

April 24, 2017 BY LeapRate Staff

Australia’s Retail Client Money Law: The Case for Registered Custodians in Forex

This article was written by Brandon Russell, CEO of Etana Custody. On March 27, the Australian government passed a law designed to protect foreign exchange clients, closing a hazardous loophole that allowed brokerage companies to use client funds for operating capital or marketing campaigns, among other uses. Allowing brokers to use forex funds this way…

April 03, 2017 BY LeapRate Staff

Securing Trader’s Funds: It’s plain good business

Why is it important for IBs to make sure that the brokers they refer clients to take customer fund protection seriously? Adinah Brown, content manager at Leverate, explains. Forex, Binary Options, CFD and similar trading instruments, all carry an inherent level of risk, however, there is no reason to take on unnecessary risks. As an IB…

July 01, 2016 BY LeapRate Staff

XTrade changes client cash handling practices following ASIC intervention

Australia financial regulator ASIC has announced that as a result of its intervention, licensed Retail Retail Forex and CFDs broker XTrade.au Pty Ltd will implement changes to the way it handles client money. The Australian arm XTrade.au is part of the global XTrade brand which also has licensed operations in Cyprus and Belize, and which recently…

August 06, 2015 BY LeapRate Staff

Morgan Stanley issued $300,000 fine for Segregated Client Fund failures

The CFTC today issued an order requiring a unit of Morgan Stanley (NYSE:MS) to pay a $300,000 civil monetary penalty for failing to hold sufficient U.S. Dollars in segregated accounts in the United States to meet all of its U.S. Dollar obligations to cleared swaps customers. The Order also finds that the firm failed to implement…

November 26, 2013 BY Gerald Segal

FCA cracks down on SEI for failures with client funds

Failure to comply with Client Money Rules costs the company almost $1.5 million The Financial Conduct Authority has imposed a fine on SEI Investments Europe for breaching its so called Principle 10. The company has not protected the funds of its investors properly and has breached the standard practice of keeping customers' money in segregated…

September 30, 2013 BY Gerald Segal

RJ O'Brien and Vision Financial fined for client fund segregation issues

RJO fined $125,000 and Vision Financial $525,000, both related to handling of client funds. Futures brokers RJ O'Brien (RJO) and Vision Financial Markets LLC were each sanctioned by the CFTC for issues tied to client funds. RJO's $125,000 fine was for commingling secured foreign futures and options customer funds, with segregated domestic futures and options customer…

December 17, 2012 BY Gerald Segal

FXCM presses the CFTC on customer protection

Advocates broker disclosure of Balance Sheet and Income Statement. LeapRate Exclusive -- LeapRate has learned that FXCM, the world's largest retail FX brokerage (and a member of LeapRate's Approved List of global FX firms) , has written a formal letter to the CFTC, encouraging the CFTC to implement several changes in its regulation of futures…

October 24, 2012 BY Gerald Segal

CFTC demands direct electronic access to bank accounts

CFTC unveils details of new customer protection rules. As we reported was likely to happen back in July, U.S. financial regulator CFTC has published its detailed suggestions for enhancing customer protections at Futures Commission Merchants ("FCMs"), which include FX brokerage firms in the U.S. such as FXCM. Among the CFTC's proposals are included: daily reporting of…

July 11, 2012 BY Gerald Segal

PFGBest shut down by regulators

Raises questions as to what CFTC and NFA regulators actually do.

September 05, 2012 BY Gerald Segal

NFA admits sins and orders self-audit

Berkeley Research Group to review NFA's practices and senior staff.

Tag: client funds segregation