KNF revokes the license for DM HFT Brokers

25 April 2017 The Polish Financial Supervision Authority decided to revoke the permit to conduct brokerage activities by Dom Maklerski HFT Brokers. The Commission issued a decision of immediate enforceability. 26 June this year is the date that was designated at the end of the HFT business.

HFT Brokers - (falling) star of Polish Forex

Dom Maklerski HFT Brokers entered the domestic Forex market with great momentum. Massive marketing expenses, attractive commissions, training, experienced staff, competitions with high prizes ... This is an HFT strategy that worked very well. The broker has gained great popularity in a very short time, and as a result, thousands of accounts opened. A year ago, no one thought that such a fate would meet HFT. The reason for going down the slope was probably overinvestment. The nail in the coffin turned out to be the guidelines of the Polish Financial Supervision Authority, which increased the capital requirements for securing customer transactions, which had to increase several times.

After leaving the Forex industry (read: HFT Brokers ceases to operate FX), the broker engaged in offering treasury products and capital management, which apparently did not meet with much interest.

Decision of the Finnish Financial Supervisory Commission

15 in March we informed you about the suspension of DM HFT Brokers license for a period of one month (read: KNF has suspended the operations of HFT Brokers). It can be assumed that the withdrawal of the permit is only a consequence of the lack of taking (effective or any) actions aimed at its “suspension”.

Message fragment:

"The Commission made the decision immediately enforceable and set in the decision the date of termination of brokerage activities by HFT Brokers Dom Maklerski SA for two months from the date of delivery of the decision to withdraw the permit to conduct brokerage activities, which took place on Tuesday, April 25, 2017. is on June 26, 2017. "

The Polish Financial Supervision Authority recognized that due to the fact that HFT Brokers conducted brokerage activities related to financial instruments, providing information about the actions taken to the public information was justified.

In the further part of the message, we read:

“This is justified by the need to protect investors to whom HFT Brokers Dom Maklerski SA directed offers for the purchase of financial instruments, as well as the need to inform issuers for whom HFT Brokers Dom Maklerski SA kept a record of bonds that this entity will no longer be entitled to perform such services. At the same time, disclosing the above information to the public is intended to inform clients for whom HFT Brokers Dom Maklerski SA provides storage or registration services for financial instruments about the need to transfer their assets to another authorized entity ”.

Withdrawal of the HFT Brokers permit is based on Art. 167 paragraph. 1 point 1 of the Act on Trading in Financial Instruments and in connection with the breach by this entity of Art. 395 section 1 in connection with Art. 395 paragraph. 3 of the CRR Regulation no. 575/2013, § 14 sec. 1, § 24 sec. 1 and 5, § 25 and § 28 subpara. 1 of the Regulation of the Minister of Finance of September 24, 2012 on the specification of detailed technical and organizational conditions for investment companies, banks referred to in Art. 70 sec. 2 of the Act on Trading in Financial Instruments and custodian banks and the conditions for estimating internal capital by the brokerage house, § 8 sec. 1 and § 83 subpara. 3 of the Regulation of the Minister of Finance of September 24, 2012 on the procedure and conditions of conduct of investment firms, banks referred to in Art. 70 sec. 2 of the Act on Trading in Financial Instruments and custodian banks.