Barclays to close Barclays Margin FX due to difficult EMIR regulations


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Barclays Margin FX clients being encouraged to move to FXCM.

LeapRate Exclusive: LeapRate has learned that UK bank Barclays (LON:BARC, NYSE:BCS) has decided to shut down its retail / margin FX business, Barclays Margin FX. Barclays has operated its margin FX business as a white label of FXCM, with FXCM winning Barclay’s business back in 2012 from Integral.

The new Barclays website excludes margin FX from its trading hub list of services.

Barclay’s decision comes apparently due to EMIR. EMIR, or European Market Infrastructure Regulation, introduces more costly and difficult requirements for European brokers offering rolling spot forex, CFDs and binary options which kick in next month (as of February 12). For example, EMIR requires submitting daily trade reports for all derivative and OTC trades — including the aforementioned spot forex, CFD and binary trades.

As Barclays has been operating as a white label of FXCM, powered by FXCM technology, Barclays Margin FX clients are being given the option to move their accounts over to FXCM.

FXCM’s statement on the matter:

Additional requirements on firms offering derivatives, including some forms of forex, introduced by the European Market Infrastructure Regulation (EMIR), come into force in 2013 and 2014. As a result of these new regulations, Barclays Stockbrokers has considered its position regarding Margin FX and has made the difficult decision that it will no longer offer Barclays Margin FX.

FXCM powers the technology and infrastructure behind the Barclays Margin FX service. Barclays Stockbrokers’ clients wishing to continue trading will be offered the chance to open an account with FXCM and transfer their positions, allowing them to continue to benefit from the security, trade execution, research and educational tools that Barclays Margin FX previously offered. FXCM is a global leader in retail FX, with over 188,000 accounts worldwide, and will continue to provide the highest standard of service.

We expect to see more forex industry consolidation in the coming months, especially in Europe, as EMIR rollout becomes a reality as of February 12.

For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report.  

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  • John

    What about the other brokerages operating across Europe? Would like to see more clarity on this.

  • Gerald Segal

    Good question John. Simply put, we believe that many brokers across Europe are not properly prepared for EMIR. And as we wrote in the article, we think there will be more industry consolidation in Europe driven by regulatory changes — EMIR, as well as new Basel III requirements. We saw something similar in the US not long ago — the US has gone from more than 40 regulated retail forex brokers to just a handful now, due mainly to the increased regulatory cost of doing business.

  • Raju

    does this apply to broker regulated in Malta / cypruss also?

  • Gerald Segal

    Yes, Raju. EMIR will apply to ALL European brokers offering derivatives trading.

  • John

    Could leaprate please publish a detailed article on EMIR rules

    1) so we can understand more clearly as to what these rules are
    2) what these rules mean for fx brokers at large

    Thanks.

  • Gerald Segal

    Hi John. We just posted an article with more details on EMIR – please see
    http://www.leaprate.com/forex-industry-news/entry/emir-february-12-reporting-deadline-approaches-are-forex-and-binary-brokers-ready.html

    I hope that’s helpful 🙂

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Barclays to close Barclays Margin FX due to difficult EMIR regulations

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