AFX Markets Limited (AFX Markets) is a UK registered company that has been authorised by us since May 2012. AFX Markets acted as broker for customers trading on its online trading platforms (ww.afxgroup.com and www.stofs.co.uk), principally in foreign exchange and contracts for difference products. According to figures provided by the firm to the us, it has approximately 1,200 customers and is responsible for the safekeeping of approximately £7.5m of client money.

AFX Markets acted as an intermediary and trades placed were contractually executed by AFX Capital Markets Limited (AFX Capital). One consequence of this is that the majority of client money, in the form of margin to secure open positions or to cover obligations, was held with AFX Capital. AFX Capital is AFX Markets’ parent and is based in Cyprus – its license with Cyprus Securities and Exchange Commission (CySEC), the Cypriot regulator, has been suspended since 19 July 2019.

On 31 July 2019, as a result of concerns over AFX Markets’ financial position and its arrangements for safeguarding monies held on behalf of its clients, we required AFX Markets to cease conducting any regulated activities, except solely for the purpose of closing trading positions, and freezing all its assets.

Subsequently, we made an application to the High Court to appoint special administrators under the Investment Bank Special Administration Regulations 2011. The application was made to protect the interests of the customers of AFX Markets by ensuring that a responsible official with lawful authority is appointed to take control of the affairs of the company. The special administrators will attempt to reconcile and distribute the client monies as quickly as practicable.

The special administration order was made by the High Court on 27 August 2019, appointing insolvency practitioners from CG Recovery Limited (CG Recovery) (which also trades as CG&Co) as special administrators of AFX Markets.