27 January, AtoZForex – Another bitter Swiss Franc consequence has just been announced. Cyprus originated Liquid Markets (formerly known as Tadawul FX), which just got its full FCA (Financial Conduct Authority) license seven months ago in May 2014 has just announced ceased its operations as a result of the decision of the SNB to scrap the long lasting 1.20 EURCHF floor on Thursday the 15th of January.
The official website of Liquid Markets, lqdmarkets.com, has just posted a message informing the public that the they have ceased providing regulated financial services under the FCA regulation and they will be terminating all existing derivatives contracts to which they are a party.
This measure comes after the company consulted with the FCA and other relevant advisers and it is effective as of today January the 27th 2015.
As a part of the measure imposed upon the company, all the open client positions are closed with immediate effect. Existing Liquid Markets clients may log in to their client accounts to obtain further information about their transactions.
Although the trouble with Liquid Markets may come as a surprise to many market players, according to our sources in Cyprus, the company had been troubled since autumn 2013. Almost all of the Liquid Markets employees had left the company in 2013 including sales representatives. Although then the company related its trouble with the corporate plans that they wanted to cease their operations and re-locate to London to leverage from UK’s prestige. Since the relocation decision given by the Liquid Markets management the ship has been sinking. All the big partners of the company have been hunted by other leading brokers which has destabilized the company.
Liquid Markets official Statement
Following the decision by the Swiss National Bank to remove the informal peg between the Swiss franc and the euro, which prompted volatility across the foreign exchange markets, LQD Markets (UK) Limited (“LQD”) has experience trading difficulties and has been in close liaison with the Financial Conduct Authority (“FCA”) about this.
Following consultation with the FCA and professional advisers, on 27 January 2015 LQD applied to the FCA for a number of requirements to be imposed on LQD and its business. Following this application, the FCA places these requirements on LQD’s permission (which is available for inspection on the Financial Services Register). These requirements include that LQD:
(1) cease carrying on any business that involves the carrying on of any regulated activities.
(2) terminate any existing derivatives contracts to which it is a party (whether as agent or principal).
In compliance with these requirements, LQD is no longer able to enter into any transactions or carry on any other business with clients and the open positions of any existing clients in derivative transactions are being closed immediately. Clients can obtain further information about these transactions by logging into their client account.
Any further material developments will be notified by further notice on this website and messages accessible through client accounts.