IKON Global Markets, Inc. Announces Strategic Shift in the Foreign Exchange Business
Over the last year, IKON Global Markets, Inc. ("IKON GM") has formed a strategic alliance and joint venture with one of the world's largest exchanges to develop a suite of products tailored to the FX market. These products will offer the same user experience as traditional OTC FX, in conjunction with the all benefits of an exchange cleared financial product.
There are many changes occurring in the global financial markets, most notably in the United States. The passing of the Dodd-Frank Financial Reform Act has brought on many new requirements and restrictions. These new policies enforced by the US CFTC and the NFA have affected the market as of the close of business Friday October 15th, 2010. Ultimately, as we consulted legislators, regulators and market participants over the past year, we came to the determination that the time has come for the Foreign Exchange market (particularly the market) to move to the customer protections and integrity of a regulated exchange.
We at IKON have taken steps to create this possibility, and as a result of our strategic alliance, IKON GM has developed this new exchange based model. Given this glimpse into what we believe to be the future of FX, IKON GM has decided that we will no longer be acting as a traditional counterparty in the OTC FX market. Therefore, in order to prepare for this exchange based model, IKON GM has transferred or ceased trading with US based clients as of the close of business Friday October 15th, 2010. Although we will no longer be acting as a traditional counterparty in the OTC FX market, we will continue to service institutional clients, as well as make markets on exchange and ECN platforms. We look forward to bringing you further news of this new and innovative model in the coming weeks.
