I am trying to find information on the highlighted/bold part of the quote. Where did you receive this information from?
Right now I am highly dissapointed with Velocity dropping EUREX with TT, but Im not sure i quite understand why this move was made... why is this is a result of their clearing firm?
I'd appreciate some more information or an explanation =/
my wire was rejected from BOA london. it toke velocity 5 days (!) to found out, that they are not possible anymore to hold new EURO accounts.
if i want a account, i would have to convert it into USD via the official BOA rate (and that sucks, because they are very high).
thats the email the send.... fuc*** up broker, never ever again.
In response to your correspondence regarding euro wires, I am wanted to make sure you are aware of the disclosure that is noted on our website regarding the receipt of euro and GBP wires. (For your convenience, a copy has been pasted below.)
In summary, due to recent regulatory changes and existing technical limitations, it is not possible for Velocity to receive and hold foreign wires. This means that Velocity must convert all foreign wires received to USD. To facilitate this process and make it more efficient, an auto-convert process was recently added to our account 005865158147 at Bank of America which also means that these funds should be sent directly to Bank of America in New York. (This is why we recently sent you our revised wire instructions.)
We regret any inconveniences to you and our foreign customers; however, due to the reasons noted above, we are required to operate as such until the technical limitations are fully addressed.
NOTICE TO OUR FOREIGN CUSTOMERS REGARDING INCOMING EURO AND GBP WIRES:
The National Futures Association (NFA) recently implemented enhanced customer protection rules which, among other things, updated the financial reporting requirements for all FCMs (Futures Commission Merchants) holding customer segregated funds and customer secured funds. As an NFA member and an FCM, Velocity Futures has been working to address the requirements of these recent changes; however, due to certain technical limitations beyond our control which impact these reporting requirements, effective immediately, Velocity Futures will no longer hold foreign currencies in its U.S. domiciled bank account and instead will convert all incoming wires of foreign currency to U.S. dollars.
This change will NOT affect the trading of products on foreign exchanges and outgoing wires may be requested in either Euro or British pound currencies. However, until all issues relating to this reporting are fully addressed, Velocity must hold all customer funds in U.S. dollars.
To help accommodate our foreign customers, and until further notice, Velocity will suspend all currency conversion charges for incoming wires of foreign currency.
We regret any inconvenience this may cause as we work to find and implement a permanent solution to meet the requirements of these new rules. Please feel free to contact Operations@velocityfutures.com with any questions.
If you want to trade contracts denominated in a foreign currency, you need an account with a balance in that currency.
Are they saying that you cant have balances in other currencies, or are they saying you need to convert your Euros to USD before wiring, then when they hit Velocity they convert to Euro again? (ie you get 2 retail FX beatings?). Is this another cheap trick to make more money by demanding they get an FX spread out of you as well?
Also who's 'regulatory changes' state you can no longer wire in foreign currency to the USA? DOH!!! I love their use of 'regulatory' word to make it sound federal. It's BS. Every other broker allows this. Their regulatory department may be, but there is no CFTC, NFA, SEC or other OFFICIAL regulatory body that prohibits the wiring in of foreign funds.
May be they are prohibited to receive foreign money because they are on the ropes? I think they are on the last page of Chapter 10. We know whats on the next page!
I'm tightening my spread. I'm now 6 bid at 8 they are out of biz in 6 months. Any takers?
Last edited by TheDude; June 17th, 2013 at 09:13 AM.
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Please take notice that Velocity Futures, LLC (“Velocity”) is discontinuing its business as a futures commission merchant and is becoming an introducing broker to Institutional Liquidity LLC (“ILQ”).....
....ILQ has purchased Velocity’s entire data center in Chicago, all of its computer systems, and has employed numerous employees from Velocity, thus assuring that ILQ will be able to provide all of the platforms and the same great service that Velocity provided to its customers. In addition, ILQ will make available all of your historical customer statements and IRS forms in its customer portal. ILQ will also begin offering you FOREX in addition to Futures utilizing your same account. Also, all commission agreements and colocation arrangements will be the same for your account with ILQ. "
Maybe it's a good thing, who knows. Just wanted to give you the news. It would be nice to hear from you who these ILQ people are.
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They've been done already for shady practices. Like I said, same old, same old.....
**TO VIEW DOCUMENTS, GO TO CASE DOCUMENTS.**
On June 6, 2012, NFA issued a Complaint charging ILQ with offsetting forex trades with unregulated counterparties; failing to report counterparties to NFA; failing to uphold high stadards of commercial honor and just and equitable principles of trade; allowing an unregistered individual to act in a capacity requiring registration as an AP; and allowing an individual who was not approved as a forex AP by NFA to commence forex activities.
On July 19, 2012, ILQ filed an Answer to the Complaint in which the firm denied the material allegations contained therein.
On August 28, 2012, pursuant to a settlement offer submitted by ILQ, the firm was ordered to pay a $50,000 fine. In addition, the firm was ordered to adopt and execute written procedures within 60 days of the Decision and provide them to NFA.
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