FCA to change license requirements for STP forex brokers

Discussion in 'Forex Brokers' started by mlawson71, Mar 9, 2018.

  1. mlawson71

    mlawson71

    UK’s Financial Conduct Authority (FCA) is looking into forcing the straight-through processing (STP) forex brokers to upgrade their licenses to those for full market makers.

    The FCA has apparently sent a letter to a number of its charges to inform them of prospective changes to the regulatory environment. According to the document, the watchdog is planning to force the STP brokers to upgrade their licenses in order to ensure better negative balance protection from losses of their clients in case of extreme market volatility.

    The main changes would be in regard to the capital requirements for the brokers and they would most likely be raised in order to be able to cover a large negative balance.
     
    Xela likes this.
  2. pipeguy

    pipeguy


    Raised same concerns in other thread: What's the difference in market maker from your broker or third party liquidity provider? Only capital requirements?
     
  3. mlawson71

    mlawson71

  4. pipeguy

    pipeguy

    RVS is it about trading system or some legal ways to hide persons who is behind the brokerage?
     
  5. mlawson71

    mlawson71