None of the financial market regulators is regulating the prop trading industry. However, a self-regulatory association has emerged, whose logo looks very similar to that of the UK regulator, except it is The Prop Association (TPA) and not the Financial Conduct Authority (FCA).
Trying to Copy the Regulator?
The resemblance of the logo design is such that the self-regulatory organisation might be confused as a clone of the UK regulator. However, its authenticity received a boost as Blueberry Funded, the prop arm of forex and contracts for differences (CFDs) broker Blueberry Markets, joined it as an inaugural Founding Member Firm.
“We’ve chosen to join the Prop Association because we believe the industry is at a critical inflection point,” said Blueberry Group’s founder and CEO, Dean Hyde. “With increasing uncertainty around future regulation and diminishing trust among traders due to bad actors, it’s essential to proactively support a unified body that can represent firms and provide clarity, structure, and accountability.”
Marcus Fetherston, Blueberry Funded’s General Manager, also joined The Prop Association as the first executive appointee.
According to the TPA website, Blueberry Funded is its only prop firm member so far.
You may also like: “The UK Might Be the First to Bring Prop Trading Regulations”
Resolving Disputes
TPA was launched last October, offering services like external dispute resolution and platform certification services, among others. It aims to offer dispute resolution services to prop firms, traders, and even tech providers. Its primary goal is to bring transparency to an industry that “has long faced challenges related to opaque practices, inconsistent standards, and a lack of accountability.”
“The association’s role as an external dispute resolution provider gives traders a fair and transparent avenue to have their concerns heard — something that’s been sorely lacking,” Hyde added.
The self-regulatory model of TPA for dispute resolution is not unique to the retail trading industry. The Financial Commission offers similar services to forex and CFDs brokers, and has dozens of members.
Meanwhile, regulators are also evaluating the prospects of the prop trading industry, the participants of which cannot be legally categorised as financial services providers. FinanceMagnates.com reported earlier that the pan-European regulator, the European Securities and Markets Authority (ESMA), ran an initial check on prop trading firms and also discussed possible regulations for the industry. The Czech National Bank also pointed out that some of the prop trading platforms might be “subject to the MiFID regulatory framework.”
Meanwhile, several regulators have warned against the practice of prop trading, while some even compared the services to “video games.”
None of the financial market regulators is regulating the prop trading industry. However, a self-regulatory association has emerged, whose logo looks very similar to that of the UK regulator, except it is The Prop Association (TPA) and not the Financial Conduct Authority (FCA).
Trying to Copy the Regulator?
The resemblance of the logo design is such that the self-regulatory organisation might be confused as a clone of the UK regulator. However, its authenticity received a boost as Blueberry Funded, the prop arm of forex and contracts for differences (CFDs) broker Blueberry Markets, joined it as an inaugural Founding Member Firm.
“We’ve chosen to join the Prop Association because we believe the industry is at a critical inflection point,” said Blueberry Group’s founder and CEO, Dean Hyde. “With increasing uncertainty around future regulation and diminishing trust among traders due to bad actors, it’s essential to proactively support a unified body that can represent firms and provide clarity, structure, and accountability.”
Marcus Fetherston, Blueberry Funded’s General Manager, also joined The Prop Association as the first executive appointee.
According to the TPA website, Blueberry Funded is its only prop firm member so far.
You may also like: “The UK Might Be the First to Bring Prop Trading Regulations”
Resolving Disputes
TPA was launched last October, offering services like external dispute resolution and platform certification services, among others. It aims to offer dispute resolution services to prop firms, traders, and even tech providers. Its primary goal is to bring transparency to an industry that “has long faced challenges related to opaque practices, inconsistent standards, and a lack of accountability.”
“The association’s role as an external dispute resolution provider gives traders a fair and transparent avenue to have their concerns heard — something that’s been sorely lacking,” Hyde added.
The self-regulatory model of TPA for dispute resolution is not unique to the retail trading industry. The Financial Commission offers similar services to forex and CFDs brokers, and has dozens of members.
Meanwhile, regulators are also evaluating the prospects of the prop trading industry, the participants of which cannot be legally categorised as financial services providers. FinanceMagnates.com reported earlier that the pan-European regulator, the European Securities and Markets Authority (ESMA), ran an initial check on prop trading firms and also discussed possible regulations for the industry. The Czech National Bank also pointed out that some of the prop trading platforms might be “subject to the MiFID regulatory framework.”
Meanwhile, several regulators have warned against the practice of prop trading, while some even compared the services to “video games.”
This post is originally published on FINANCEMAGNATES.
