The association of Alpari companies (“Alpari”), one of the largest global providers of online foreign exchange trading, has been undergoing a strategic review of all global operations led by Alpari (UK) Limited Chief Executive Officer Daniel Skowronski.
The purpose of the initiative is to ensure that Alpari has the most optimised business model and governance structure across the various operating regions to drive future earnings growth.
As part of this global review, Skowronski and his team have been working with Alpari (US), LLC (“Alpari US”) Chief Executive Officer Jermaine Harmon to determine the appropriate model going forward. This has been finalized and approved by the shareholders of Alpari US.
Alpari US, which has been operational since 2008 offering retail FX and more recently futures and QuantumFX, following this review, has announced that it will now focus solely on its fast-growing institutional division, QuantumFX. The company will withdraw from offering FX to US-based retail clients, which is effective from today, 20 of September, 2013. In addition, the company will withdraw from offering futures to US-based retail clients at a later date.
Speaking to analysts earlier today, Harmon commented that:
“The US brokerage market continues to evolve through technological developments and changes in the regulatory environment. We have carefully considered the implications of these developments, refining our strategy and business model to ensure that Alpari US is best placed to drive consistent, future earnings growth in the US.
Our QuantumFX division, which offers integrated, full-service FX solutions for corporations, hedge funds, banks and high-frequency trading institutions, has established a strong presence in the US market and shows good future earnings potential. This will receive increased business focus and investment in new services.”
Alpari US will be communicating to all its US-based retail FX clients today, explaining the developments. Retail FX clients of the company will have two options: the first is to migrate their account to another regulated US FX broker (that the company has arranged terms with on behalf of its clients) or to close down their account and have their funds returned.
Alpari had a strong first half in 2013, reporting several months of consecutive record trading volumes.