Another casualty of the extreme market volatility which suddenly occurred on January 15 this year as a result of the Swiss National Bank’s removal of the Swiss franc’s currency peg has come about, this time Boston Prime, the prime brokerage division of Boston Technologies.
The company’s commercial website, which is hosted under the URL www.bostonprimefx.com is no longer live, and a notice has been placed on the page by the company, to this effect:
On January 26 2015, Boston Prime Ltd., a UK FCA regulated firm, has disabled all trading services as a result of negative balances following SNB announcement on January 15, 2015.
Boston Prime has reported the current financial insolvency to the FCA (Financial Conduct Authority).
More information will be provided as it becomes available.
As Boston Prime provides prime brokerage solutions to retail FX firms, the knock-on effect is that such firms may begin a search for a new provider. One such example is Japanese FX company FXCrown, whose liquidity was provided by Boston Prime for its TightFX facility which provided retail FX trading via MetaTrader 4 to domestic Japanese clients.
Due to the insolvency of Boston Prime, FXCrown is terminating its TightFX service, and has published a notice on its website advising clients to withdraw their funds.
Prior to this unfortunate event, Boston Prime had undergone some senior management changes, with former Managing Director Mitch Eaglstein having left the company to assume the position of CEO of Fortress Prime which has operations in New York and the United Arab Emirates, preceded by the departure of Kevin Millien in 2013. Mr. Millien was a co-founder of the company, and CEO of Boston Prime whilst holding the position of COO at Boston Technologies.
Boston Technologies is not affected by the insolvency of Boston Prime and continues to operate as normal.