Infinox Fined £99K by FCA for Failing to Report Trades


The UK’s Financial Conduct Authority (FCA) fined Infinox Capital Limited £99,200. The company did not report thousands of trades. This is the first time the FCA fined a company under the UK MiFIR rule. The rule helps keep financial markets fair and safe, especially for people trading CFDs.

Why Was Infinox Fined?

From October 1, 2022, to March 31, 2023, Infinox did not report 46,053 trades. These were single-stock CFD trades made through one of its accounts. The FCA said Infinox did not have good systems to track and report its trades.

Reporting trades is important. It helps the FCA find market fraud and stop unfair trading. Without these reports, illegal activities can go unnoticed.

What Did the FCA Find?

The FCA has a rule called Article 26(1) of MiFIR. It says that companies must report trade details by the next working day. This helps keep markets open and fair.

Infinox hired a company to check its records. It found the mistakes but did not tell the FCA right away. Instead, the FCA found the problem on its own. This showed that Infinox’s system for tracking trades was weak.

Steve Smart, a top FCA officer, said:

"Infinox did not report thousands of trades. This means bad trading could have gone unnoticed. Reporting trades helps protect markets and investors."

The FCA warned that missing reports could let people trade unfairly. This can hurt the trust people have in the market.

Why This Fine Matters

The FCA has fined other companies before for missing reports. But this is the first time it fined a company under UK MiFIR after Brexit. MiFIR is a law that helps track trades and keep markets safe.

This fine tells other forex and CFD brokers to follow the rules. It shows that the FCA will take action if they don’t. The FCA is keeping a close eye on financial companies in the UK.

What Forex Traders Should Know

This fine is a lesson for forex traders. They should make sure they use brokers that follow the rules. Good brokers report their trades and are honest about how they work.

If you trade forex, check for these things:

  • Regulation: Choose brokers approved by top regulators like the FCA, CySEC, or ASIC.
  • Clear Information: A good broker should be open about prices, trade reports, and fees.
  • Security: The broker should have strong rules to stop fraud and unfair trading.
  • Help for Traders: A trusted broker should have good customer service and help traders understand the rules.

More Crackdowns on Forex Brokers

The FCA is paying more attention to forex and CFD brokers. In recent years, many companies have been fined for breaking rules. Problems like lying in ads, not protecting customers, and failing to report trades have been common.

For forex traders, this means they need to be careful. Before using a broker, check if they follow the rules. This will help protect your money and trades.

Final Thoughts

The FCA’s £99,200 fine against Infinox is a warning to all brokers. They need to improve their systems and follow the rules. The FCA wants to make sure all trades are reported properly.

Forex traders should pay attention to this. It’s best to trade with brokers that are open, fair, and follow the law. If a broker does not report trades, they could be hiding other things too.

As markets change, regulators are working harder to keep things fair. Reporting trades is not just a rule; it’s key to making sure the market stays honest and safe for everyone.

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