cmc closing acccount for us residence

Discussion in 'Forex Brokers' started by watchdaride, Aug 15, 2008.

  1. I just got an email from cmc that they woud be closing down . I thought some big investment bank bought part of the company .
    Any one knows the reason why

    Here is the email

    Dear Valued Customer,

    CMC Markets regrets to inform you that it has decided to wind down its U.S. operations . This action is intended to be effective on or about September 30, 2008.

    In order to facilitate a smooth transition for our clients, CMC's Client Relations Department will be contacting you shortly regarding the account closing process. However, in the meantime, you may continue opening positions on the Marketmaker platform until August 22, 2008, 5:00 pm (EST). After that date, you will no longer be able to open any new positions and will be required to close any remaining positions no later than the close of business on September 30, 2008.

    CMC Markets hopes you have enjoyed your trading experience. We appreciate your cooperation during the ensuing account closing process and apologize for any inconvenience this may have caused.

    If you should have any questions and/or concerns, please contact the CMC Client Relations Department, toll free, at 212-644-4220.

    Risk Warning
    Off-Exchange Foreign Currency trading carries a high degree of risk and may result in serious financial loss. Foreign Currency trading is not suitable for everyone. CMC Markets is remunerated for its services from the spread between the bid and ask prices. In situations where third parties introduce customers to CMC Markets commissions may be charged or compensation provided through the bid and ask spread.

    CMC Markets (US) LLC is registered as a Futures Commission Merchant with the Commodity Futures Trading Commission and is a member of the National Futures Association. Our NFA Membership number is 0356817. You can view our registration status and history, as well as that of our registered representatives by visiting and searching for CMC Markets.

    This publication is intended to be used for information purposes only and does not constitute investment advice.

    Offices: London - New York - Sydney - Beijing - Hong Kong - Frankfurt - Toronto

    Head Office: CMC Markets UK Plc 66 Prescot Street London E1 8HG United Kingdom

    Registered in England: 02448409 / 02589529 Regulated: UK - FSA; USA - NFA; Australia - ASIC; China - CBRC; Hong Kong - SFC; Germany - BAFIN; Canada - OSC

    All information contained within this email, and any attachments, are subject to CMC Markets standard Terms and Conditions - which can be found at:

    This email and any attachments, which may only be used by the intended recipients, are confidential and may contain proprietary information, some or all of which may be legally privileged. Unauthorised disclosure, copying or distribution of this mail or its contents is strictly prohibited. Should you have received this email in error please immediately return it to the sender or notify the company at, then delete the email and any attachments from your system.

    CMC Markets UK Plc takes every effort to ensure that our systems are regularly scanned for viruses and other infections with updated programs, but cannot guarantee emails sent have not become infected elsewhere, we advise recipients to conduct their own checks as considered appropriate.
  2. schrott


    Yup, I got that one too. I called them (call went to the UK) and was told by a girly that the closure was for 'Business Reasons' - yeah, right!
  3. They did, Goldman Sachs purchased 10% 9 months ago for a reported $300m apparently .

    I can't help thinking it's something to do with that deal, maybe some sort of strategic business planning, but it's hard to imagine what would justify closing shop in the US :confused:

    They've also just cut 10% of the 1,200 London staff.

    Something's brewing.....
  4. did she try to get you to open an account in UK or just said you have to close the account ?
  5. Are you going to stay with them ? I like cmc and hate to leave them . Any other big forex brokers over there?
  6. I'm staying with them as I'm in UK (funds are protected), but I can't see them going bust any time soon really :)

    There are quite a few big forex names over here, all the familiar ones like GFT, FXCM, and Interactive Brokers have UK offices, none that I would trade with though apart from CMC and Barx (maybe IB if they ever got their FX platform sorted out!)

    It's a very odd move for CMC to make, and at such short notice....
  7. galiano


    I'd say this is something to do with new or upcoming US capital requirements. CMC is not very well capitalized for changes. Or maybe they are afraid of the new CFTC forex task-force. The abruptness invokes the task-force possibility.

    FCM financial data from CFTC

  8. I think they're focusing more on CFD's, which was apparently Goldman's motive for their $300m 10% stake in CMC.

    I don't think they'd have too much of a problem putting $20m into the US office if they needed to, it might be they just don't want to for some reason.

    How effective this task-force will be remains to be seen, just another gesture I imagine, either way it shouldn't worry the honest shops.
  9. euclid


    Maybe they don't have enough US FX clients to justify it. It seems like an awful waste of $20m.
  10. Yep, good point, I hadn't thought of that angle.
    #10     Aug 16, 2008