1 June AtoZForex, Vilnius — Established in Singapore, the Phillip Capital Group is a global financial house that is present in the US all the way to Asia. The broker offers a wide range of financial instruments such as Forex, commodities, futures, securities and more. AtoZForex learnt that the US branch of the group Phillip Capital Inc. (PCI) has ceased its retail Forex trading offer to clients. As of today, the end of US Phillip Capital Forex operations is official. However, PCI will continue to "focus its efforts on growing its futures and securities business".
How SEC’s new regulation affects PCI
Back on the 20th of May this year, the Securities and Exchange Commission (SEC) introduced an important notice to all of its broker-dealers. In this announcement, SEC informed that from the 31st of July 2016, all broker-dealers will be no longer be able to offer retail Forex trading to its clients. In today's note to the clients, the Co-CEO & Director of PCI, Lynette Lim revealed the disappointment of the Chicago-based broker:
“I regret to inform you that due to a recent Securities and Exchange Commission (“SEC”) release, Phillip Capital Inc. being dually registered as a broker-dealer and Forex dealer member, will no longer be allowed to offer retail Forex to US costumers beginning July 31, 2016.”
US Phillip Capital Forex operations ceased
In response to SEC’s notice, Phillip Capital Inc. has ceased its retail Forex trading offers in the US. So what's next for the clients of Phillip Capital Inc.? Lynette Lim clarified the following:
“Phillip Capital Inc. will therefore stop trading for existing Forex accounts and will not open any new Forex accounts effective of June 1, 2016. We are also unable to offer Forex to retail customers of Introducing Brokers.”
Building further, Lynette Lim stated that the timing of the SEC’s decision is quite unfortunate. As PCI just started the “soft launch” of their Forex offering. Being backed by Phillip Capital Group’s resources and financial stability, Lynette Lim was confident that PCI “had all the criteria to be a strong player in the forex market”.
US Forex operations already removed from website
The US CI was launched in 2010 and after being active on the market for 6 years, it now marks the end of US Phillip Capital operations. Anyone that visits Phillip Capital’s website will immediately see that Phillip Capital's US operations have been removed from the starting panel.
In overall, the end of US Phillip Capital retail Forex operations reflects that the local regulators are prominent public bodies that each broker needs to abide. Share with us your thoughts on this case.
Let us know down in the comments section.