Canada recently started requiring forex brokers to register with its local agencies. IIROC is the national self-regulatory organization which oversees all investment dealers and trading activity on debt and equity marketplaces in Canada. Even Canadian based powerhouse OANDA had to recently register in Canada though most of its clients are based in the US. Its US competitor FXCM chose not to register in Canada directly but through a white label partnership with Friedberg Direct.
It seems the trend is on regional regulations as regulators worldwide understand both the need and the economic benefit in requiring brokers to register locally. Turkey is just one such recent example. The long awaited regulation in Israel (home to some 25 prospering brokers) is making slow but steady progress and may soon be enacted.
GAIN Capital – FOREX.com Canada Ltd.
GAIN Capital – FOREX.com Canada Ltd. is admitted to membership in the Investment Industry Regulatory Organization of Canada, effective May 10, 2012.
The head office is located at Bedminster One 135 US Hwy 202/206, Suite 11, Bedminster, New Jersey 07921. Telephone: 908-731-0700 Facsimile: 908-731-0701.
The directors and executives are:
- Maria Concepcion Arena, Industry Director
- Alexander Robert Bobinski, Industry Direct, Non-Trading Executive, Chief Compliance Officer and Supervisor
- Meaghan Einav, Non-Industry Director
- Kenneth O’Brien, Industry Director, Non-Trading Executive, Chief Executive Officer and Ultimate Designated Person
- Steven Somodi, Non-Trading Executive, Chief Financial Officer
Many countries took this step already.. it seems the Forex market will become the opposite of what is called “global”. I believe that mostly because the account opening overseas becomes more difficult with all the paperwork required.