Alpari (US), LLC (“Alpari” or “Alpari (US)”), a global provider of online foreign exchange and futures trading services, today announces that the company has been selected by the Korean investment firm, Eugene Investment Futures (“Eugene Futures”), to provide top tier liquidity services to their growing spot FX business. Eugene Futures will enable direct market access to Korean investors through Alpari’s deep pool of liquidity offered in the U.S.
Spearheaded through Alpari’s Pro business line or offering, Alpari FX Pro, this partnership marks another milestone in the company’s global expansion efforts and reinforces its increasing position as one of the largest brokers in the world. Alpari distinguishes itself from other U.S. regulated RFED’s in the territory by offering a value-added and tailored customer service experience, which is the core of its business model. “Our commitment stands to provide high-level customer service in parallel with one of the most competitive trading environments in the FX market,” comments Jacob Plattner, VP of Institutional Sales. “We are proud that Eugene Futures believes in our partnership offerings, including low-cost trading and high-speed execution, which meets the expectations of Korean investors and their existing clientele and confident that Alpari’s technology, tools and experience will contribute momentum to our partners’ business operations”
Eugene Futures has been operating since 1991 when it was originally established as First Financial Affiliates of CJ Group. The company assimilated into the emerging FX margin market when it was first introduced in 2005 and saw growth potential. With foreign exchange fully integrated into its business line, Eugene Futures recognized the value in a liquidity-based partnership with Alpari, which affords them the opportunity to offer some of the most desirable speed-to-market execution in Korea.
The Korean market is regulated by the Financial Supervisory Service (“FSS”) which has been controlling the landscape following the economic crisis of 2008. When confidence in Korean brokers increased, investors brought their accounts back to Korea and volumes surged. The FSS benchmarks the FX market against the CME currency futures market requirements. The FSS regulates the trading environment in Korea similarly to the National Futures Association (“NFA”) in the US, mandating firms to ensure investors are properly financed and educated to manage their risk and trade responsibly. Despite stringent government regulations imposed to protect investors, the FX market remains attractive in Korea where most are accustomed to futures trading requirements for margin and leverage. The minimum unit of base currency for trading is 100K and the maximum leverage 10:1. As of March 5, 2012, the FSS implemented a rule which prohibits investors from hedging their FX positions; a rule that was previously passed by the NFA in the United States.
Alpari’s proven track record of compliance in a similarly regulated U.S. market helped forge the relationship with Eugene Futures. Alpari (US) is dually registered with the Commodities Futures Trading Commission as Retail Foreign Exchange Dealer (“RFED”) and Futures Commission Merchant (“FCM”) and is a member of the NFA: Member ID 0379678. The NFA is the designated self-regulatory organization for the U.S. futures and Forex industries, which strived to develop rules, programs and services to safeguard market integrity, protect investors and aid firms in adhering to their regulatory responsibilities. During 2009, the NFA Rule prohibiting hedging was enforced, preventing traders from opening opposite positions of same currency pairs in the same account. Another rule imposed by the NFA later in the year required clients of US firms to execute orders in a First In, First Out basis (“FIFO”) when multiple positions are held in the same currency pair. Additional trading regulations were enacted by the CFTC in October of 2010, mandating residents to open accounts with U.S. regulated brokers under the new registration category, “RFED,” lowering leverage to 50:1 for major currency pairs and 20:1 for all others and setting new registration requirements for Trading Advisors and Introducers. In 2011, Alpari adjusted its business in accordance with requirements promulgated by the Dodd-Frank Wall Street Reform and Customer Protection Act of 2010 to prohibit trading OTC precious metals in the U.S. On an on-going basis, Alpari communicates with and educates traders on the regulatory environment of the U.S. foreign exchange market and ensures full comprehension and implications on trading strategies and risk management.
A representative from Eugene Futures, comments “Eugene Futures and Alpari both believe in the essential value of ensuring that customers are informed and educated to trade responsibly and are serviced through a high-level of dedicated customer support. These will be chief initiatives through this partnership. We are assured by Alpari’s experience in these areas and look forward to a long standing and successful relationship.”
Daniel Skowronski, CEO of Alpari (US) adds, “Opening up our liquidity pool to overseas institutions and partnering with Eugene Futures is a fundamental building block to our Pro offering and sharpens our competitive edge in the global foreign exchange market. We believe that our penetration into the Korean FX market puts Alpari on pace to becoming a true global leader and recognized worldwide as a full service investment firm.”
Alpari recently announced its five-year Title Sponsorship of the World Match Racing Tour, the prestigious professional sailing series featuring 9 World Championship events across the globe. Renamed the Alpari World Match Racing Tour, the second championship event is the Korea Match Cup taking place in Gyeonggi-do, South Korea, this week. The event provides an ideal foundation for the marine recreation and tourism industry that is developing rapidly in Korea. It will offer Alpari premium brand exposure and the opportunity to engage with ambitious and self-motivated residents that share similar values of Alpari’s online trading audience. The full schedule of WMRT Sailing Tour events can be found here.
For more information please visit www.alpari.com/pro