It has been a while since we sent an update out to our valued clients, as we have been constantly busy working on expanding our offerings and providing white glove service to our clients. We have however accumulated a bit of important news recently, and thus thought an update would be the most sufficient means to distribute this information.

In this update you will find:

  1. News on proposed changing licensing regimes – including the addition of an ASIC license in Australia.
  2. News on new payment processors.
  3. New and hugely improved liquidity streams for our client base to trade on.

 

Upcoming Changes to Regulatory Frame Work

We have some fairly big news on the regulatory front coming down the tube for September. We will be closing down our FSB South Africa Authorized Rep license, and launching an ASIC licensed version of Mt.Cook in its place. While we are closing down our FSB AR license, we will be retaining our offshore Vanuatu securities and derivatives license with the VFSC, which will become our default license for those currently under our FSB license.

Thus Mt.Cook will have two regulatory regimes for your account terms of service to fall under. Our offshore division (licensed via the VFSC) and our Australia division (licensed via ASIC).

There will be some significant differences between the two license regimes. These primarily relate to the feeds associated with the license however, and also liquidity streams that each one clears trades through. We have more information on our improved trading feeds and liquidity streams below, and how they differentiate from one another.

Our primary goal with the dual licensing, and multiple liquidity feeds is to produce one of the most all-inclusive, comprehensive, and wide-ranging FX offerings available to traders. This covering the most optimal conditions and requirements for the most hard-core quants, all the way to to the manual trader simply requiring a highly regulated trading venue – and then everything in between.

Please note however (and rest assured) that under both licenses, client funds remain protected at all times, segregated from operating capital, and both licenses utilize large Australian custodian banks, and UK based Prime Banks providing very similar structures, and levels of protection to clients. Our risk management, low leverage issuance, and STP only model, helps to ensure that we effectively mitigate against all market threats and counterparty risk, by keeping our risk exposure as a company low, and placing safety and stability at the forefront of our entire business model.

International clients (with the exception of retail USA clients and OFAC sanctioned countries) will be accepted under both our licensing regimes (with the exception of Japanese and New Zealand residents unfortunately not being permitted under the ASIC license).

Some of you have asked how this will relate to our feeds, and our platforms. Generally speaking a simplified version of it will look like this…

As we cater to forex professionals, FX managers are a big part of our business. Money managers will undergo a bit more scrutiny on the compliance side with the ASIC license as it relates to Australian involvement (i.e., Australian based money managers and clients).  While we will not have our Hybrid PAM software available on the ASIC license immediately, we plan to have it available in very short order (2-3 weeks after launching).

Although it’s non-traditional, we believe that having multiple licenses including the combination of “offshore” and “onshore” licensing albeit with fully “onshore” management, operations, safety, and service being provided to both segments provides the best of both worlds. This permits our team to be able to operate at a highly proficient level, have full global coverage, remain adaptable, and it also fosters a business-friendly, flexible regulatory landscape where we can cater to many different types of clients with low bureaucracy and minimal overhead, all the while delivering a top tier experience for our clients.

 

New Payment Processing Options

Due to recent growth and expansion in to Asia, we have recently added China UnionPay as a payment option. China UnionPay (or UnionPay) was established in the Peoples Republic of China, with the blessing of the Chinese government, to provide a payment processor for major Chinese banks. Today UnionPay has leveraged its position to become the world’s largest supplier of payment cards (with over 5 billion cards issued bearing its logo). This makes deposits quick and efficient and automatic for clients currently using, or with access to UnionPay.

We are mid-way through adding credit card support as well. This make our available payment methods as Bank Wire (our most commonly used method), Neteller, China UnionPay, and Credit Card (once finalized).

 

Different Liquidity Streams (STP Trading “feeds”) For Traders.

To some traders the liquidity stream that they trade on is extremely important and paramount to success, while to others this is less significant. Typically it is the algo crowd who are more sensitive to differences in liquidity streams, server power, server locations, and trading platforms and their underlying technology.

DMA FEED: While we had originally planned to close down our DMA feed, we have had significant resistance from traders who want to continue to use it, and who also like to have the option to split their trading across two different liquidity sources for “split testing”, diversification, or additional liquidity.

While many clients have moved across to our ECN already, we have made some significant strides and improvements on the DMA feed, including the addition of Divisa UK (a multi-asset prime broker) as one of the primary liquidity sources. This feed brings a lot more exotic cross pairs, cheap swaps, and deep liquidity for trading on, and thus may be appealing to different traders. Since we have renewed this, this stream known as our “DMA feed” (direct market access feed) shall continue to be available to traders, so interested parties are urged to contact us for more details about this liquidity feed. You can view a detailed synopsis of this liquidity stream here: http://mtcookfinancial.com/stp-dma/

ECN FEED: Our ECN stream still remains an excellent and top tier option for those requiring tight spreads and fast execution and an ECN-integrated back office. We have improved the liquidity lineup on this as well, and have recently loaded our CFD offering.

Of course one of the biggest advantages to our ECN feed, is the deployment of our Hybrid PAM technology for usage by money managers, which has been hugely popular due to the built in safety and risk management tools, including the ability to invest in multiple currencies, control/scale risk up or down, and to protect capital with a hard equity stop loss. The amount of work saved by money managers with this software is incredible including auto high water mark calculation and charging of fees, and multi-IB payment handling. More information on our ECN feed can be found here: http://mtcookfinancial.com/stp-ecn/

AUSTRALIAN ECN: With our ASIC license we are also packaging yet another ECN feed, which is similar in nature to our existing ECN but slightly customized from a liquidity standpoint as we can access different pools of liquidity under ASIC licensing. The liquidity source offers more exotic LPs, and we have bridged it by another technology provider (we use the 3 major aggregators/bridges now), thus providing another different trading condition and environment for savvy traders to explore.

The bottom line here is that we will now have multiple, excellent, different options for liquidity streams, and remain available to best match up traders with the best possible option, technology, and conditions to best fit their requirements.

It has been our goal since the very start to provide one of the most customizable, comprehensive, and wide ranging offerings to professional traders. We have worked extremely hard to produce this and are extremely proud of the outcomes thus far.

We believe in transparency, and here is a rough comparison of the different trade-able feeds now available at Mt.Cook:

If you have any questions about our different offerings, please do not hesitate to contact us for a consultation.

Over the past few years we have really tried our best to always keep our focus on what actual matters – delivering top tier prime trading conditions for an international client base of FX Professionals, and providing custom tailored white glove high level support and specialized consultation services to all of our global partners.  

We have always believed that this is a hugely lacking component in the current marketplace. Our newly acquired licenses, technology, platforms, and trading stream improvements helps us to further expand and support this model.  If the past 4 years are any indication, there certainly is an increasingly big appetite from professional traders looking for the same things, and thus, for reliable partners who can truly support them in their endeavors.

Sincerely,