Barclays to close Barclays Margin FX due to difficult EMIR regulations

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.  

Read Also: