Exclusive: Brokers that Clear Trades via MTFs Allowed to Advertise in France

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It’s been a bit over six months since the restrictions on offering Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term and CFDs in the French market kicked in. Brokerages operating in the country were forced to stop advertising their products by the Autorité des Marchés Financiers (AMF) after the Sapin 2 bill was voted into law in the French Parliament.

After a thorough examination of the market, JFD Brokers is launching a new product in France that clears it to advertise its services, as the marketing ban in France does not apply to brokers that are executing orders via a multi-lateral trading facility (MTF).

JFD Brokers, very active in France, has developed a tailored solution for the French market and is routing all orders to be executed via MTFs.

Commenting to Finance Magnates on the news, the CEO of the company, Lars Gottwik, said: “As a 100% STP/DMA broker, JFD has always been about running a business model based on commission revenues - unlike most of our competitors who are running a book.”

“As our STP/DMA business model is very close (or almost identical) to an MTF, and due to the fact that we already handle a specific order flow for the last three years through specific MTFs, we took the decision to address the whole French market via an MTF setup,” Gottwik explained.

MTF Legal Interpretation Opens Doors to France

Elaborating on the regulatory hurdles presented by the advertisement ban, Gottwik said: “According to our legal interpretation, the measures of the French regulator will allow JFD Brokers to continue marketing in France as a broker executing on an MTF.”

JFD Brokers is not the only company that is working on delivering MTF Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term to French clients. Last week, IG Group announced in its full year earnings report that the broker is developing a Multi-Lateral Trading Facility (MTF) for its European operations.

A spokesperson for one of the leading MTFs in the foreign exchange industry, which services a number of retail brokers, explained that the company’s brokerage clients need to make their own regulatory assessment in their given jurisdiction.

Gottwik expressed confidence about the French market: “Overall, we at JFD, consider France to be one of our core markets, where we see great potential going forward, especially by having a regulator which actively pushes for transparency.”