Today, AmorFX has received an execution certification by the Financial Commission (FinaCom PLC), an industry-specific association. This comes in a bid from FinaCom to reduce the volume of disputes in regard to execution before going into formal complaint territory.
Big Restrictions On Turkey’s FX Space
AmorFX itself stands as a multi-asset brokerage firm, offering indices, FX, commodities, and CFD trading services. Amusingly enough, AmorFX has no regulatory status within Turkey, but exclusively serves the country at the same time.
The regulators for Turkey have been increasingly hard against the retail FX space. These regulators have shown no intent to revise the significant limitations imposed on the FX space ever since 2017. In fact, the CBM had introduced new amendments in 2018 focusing on leveraged FX trading transactions. The maximum leverage had been set at 10:1 (Having previously been 100:1), with the minimum margin being set at TL 50,000, or about $6,840.
A New Solution To Level The Playing Fields
The assessments made by FinaCom are all dependent on the VerifyMyTrade post-trade solution. This solution allows for the capacity to measure execution quality accurately across all positions within the retail FX space.
The service itself was introduced back in 2018, allowing clients of brokerages who are members of the Commission to see whether or not their trades were fairly priced through the tool’s analysis.
VerifyMyTrade does this through the use of an array of retail FX brokerages’ price feeds. Through these price feeds, the solution is capable of developing statistical box plots, which themselves are representations of the maximum, minimum, as well as percentiles regarding the ticks received for that day.
A Slick Little System
Audited platforms are mandated to continuously submit order execution data to the VMT analysis tool should they want to maintain their status of certification. This allows for the execution price to be mapped to the boxplot, which enables the measurement of that broker’s execution in both effectiveness and quality.
With these new abilities of price verification, internal price dispute settlement should be possible for the brokerages through the inducement of asset prices at any given time by an impartial party.
Should one client then claim to have consistently poor execution, the handling execution-related trade disputes can be handled by way of the analysis results.
The self-regulator had received a record number of complaints for the year 2020. Its latest annual report revealed a total rise of 32% when viewed year-over-year. The traders sought a spectacular $10.9 million for 2020, as opposed to 2019’s $7.4 million.