CPT Markets Upgrades FCA Licence to IFPRU €730k
CPT Markets UK, the trading name of UK brokerage Citypoint Trading Ltd, has received approval from the FCA to upgrade its permissions to full scope, “IFPRU €730k ” license, according to a regulatory memo seen by Finance Magnates.
The variation of permission to the higher licence level issued by the City watchdog allows the FX and CFDs broker to trade with its clients as principal without the matched limitation.
CPT Markets was established in London in 2008, and its upgraded authorization ensures that it adheres to corporate governance, risk control measures and adequate liquidity levels. The company’s original license from the FCA was for a Limited License – matched principal broker.
Citypoint Trading, which has been offering FX and CFD products based out of London since it was incorporated in 2008, was acquired last year by Allen Market Limited, a UK based holding company. Since then, it has expanded its workforce, rebranded to CPT Markets UK and launched a new website.
What does it mean?
IFPRU €730k investment firms (where IFPRU refers to the prudential sourcebook for investment firms) are authorised to deal for own account in any investment instrument. This gives the firm added flexibility without the matched limitations.
Full-scope IFPRU €730k firm status is given to firms based in the UK, with own base funds of €730,000 (roughly $820,00), that must adhere to both the European Securities and Markets Authority’s (ESMA) Markets in Financial Instruments Directive and FCA regulations. Such firms are also subject to IFPRU 11 and are required to submit recovery plans to the FCA on a regular basis.
As Finance Magnates reported earlier , the FCA was considering forcing straight-through processing (STP) brokers to upgrade their licenses to those of full market makers. This is necessary to ensure that the companies manage to cover negative balances resulting from prospective client losses due to unexpected market moves.
Information of this article contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. CPT Markets does not accept any liability whatsoever for any loss arising from any use of this article or its contents. This article is not construed as an offer to sell or solicitation of any offer to buy any of the currencies referred to in this article.
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Editors’ Picks
EUR/USD climbs to two-week highs beyond 1.1900
EUR/USD is keeping its foot on the gas at the start of the week, reclaiming the 1.1900 barrier and above on Monday. The US Dollar remains on the back foot, with traders reluctant to step in ahead of Wednesday’s key January jobs report, allowing the pair to extend its upward grind for now.
USD/JPY plummets to 156.00 amid rising intervention jitters
USD/JPY retreats markedly and revisits the 156.00 neighbourhod at the beginning of the week amid growing speculation that authorities could step in to curb further currency weakness. That chatter picked up after PM S. Takaichi secured a landslide victory in Sunday’s election, fuelling expectations of a firmer stance on the Yen.
Gold treads water around $5,000
Gold is trading in an inconclusive fashion around the key $5,000 mark on Monday week. Support is coming from fresh signs of further buying from the PBoC, while expectations that the Fed could turn more dovish, alongside concerns over its independence, keep the demand for the precious metal running.
Crypto Today: Bitcoin steadies around $70,000, Ethereum and XRP remain under pressure
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