Did anyone notice mff website. It says their accounts are frozen.
This is the message they have posted -
Traders
Yesterday we learned that, without prior notice or discussion, a provincial securities regulator in Canada and the commodities regulator in the United States issued orders preventing us from trading securities or accessing funds in our bank accounts.
Until these freeze orders are lifted or modified, our business is effectively, and at least temporarily, frozen as well.
We will be reaching out to the regulators to discuss their concerns, and the first court date to determine whether the freeze orders should be lifted or modified is currently scheduled for September 11 in the US, with another hearing later that same week in Canada.
We hope to have this matter resolved as soon as possible and will update this message as events occur.
The fact that freeze orders have been deployed sounds very bad, maybe as bad as serious fraud or they are out of operating funds. Is your account protected in any way - such as segregated clients’s accounts, a loss guarantee scheme etc.?
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Its not the traders money isn’t it? They are only trading demo accounts and maybe some really good traders are copied by the funding company? Profit splits are paid from the fees losing traders pay to make the challenge. Isn’t that the business model?
It will be interesting to see what happens with unpaid profit splits.
RIP to those who really made a living by trading with mff.
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You are correct. This is a prop firm (actually the biggest, I believe) and so traders do not invest their own funds. But there are those traders who have earned good profits there that they have not withdrawn and that is probably lost. But that is not certain yet until decisions are finally made.
The fact that the company and its business activities are suddenly frozen by regulatory authorities suggest this is something specific to this business.
But, as so often happens, even a one-off case leads to new regulation affecting the whole prop firm industry. That is not necessarily a bad thing but will no doubt create some uncertainty across the industry.
A broadening of regulation has been anticipated amongst prop firms for some time, but I think this move has come as quite a suprise to everyone (except maybe those in MFF!)
I think there is a court hearing in the next few weeks…
This won’t be resolved any time soon. Fraud it appears.
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