ICE FX UK

Hello.

Today I will make many happy, as well as upset many. And I don’t even know which one is more pleasant…
From the title of the article, I think everyone guessed how this would happen.

It amuses me that a couple of months ago on MMGP, while discussing ICE FX in the style of “You are an offshore company and a scam”, I posted a link to the FCA register, indicating that Ice Quotes has management license. But no local expert paid attention to this (although I guess they just don’t know how to “read” the register and did not understand anything), and discussions that we are a “motherfucking offshore” continued. Clowns…

The British unit of ICE FX will start operations in the first half of 2018. Exact dates will be announced later.
Operations will be carried out through an Appointed Representative (AR) from AFX Markets and ForexMax.
Everything you need to know about AR from the theoretical point of view is well described by Graf Keller.
In a separate article later, I’ll cover the practical part of the company’s activities “under the umbrella” and the currently expected features of ICE FX UK.
Briefly: AR is actually similar to WL with some nuances particular features: the license of the principal company (AFX, ForexMax) completely covers the satellite company (we); clients’ money is kept on the accounts of the parent company (in this case, AFX Markets) and all operations are performed on their infrastructure.
It is difficult for any company that has no history to obtain its own licenses. The reason is described below. We will initiate the process of obtaining licenses not earlier than six months after ICE FX UK has been launched.

The opportunity for a public investment proposal means that there is need for 2 different types of licenses: STP (brokerage and storage of funds) and funds management (similar to what ICE AM has in Switzerland).
If one company obtains both types of licenses at the same time (like Darwinex did), it is viewed by FCA as an increased risk, since investors’ can lose their deposits and, as a consequence, the company is interested in it. At the moment, only a few companies with a long record of service, reputation (well, “you know what else”) have both licenses at the same time in the British jurisdiction.
In view of the fact that we are a new company, in order to facilitate the procedure of obtaining AR for both types of activities simultaneously, we initiated the procedure for obtaining licenses from various companies (AFX Markets and ForexMax) and for various legal entities.
Ice Quotes – a company that has AR status to manage funds (from ForexMax);
Ice Castle – a company that has AR status for brokerage (from AFX Markets).
At the moment, AR has been received from both companies, and the process of changing owners and signatories in the bank from the current persons to the end persons is ongoing.
The details of ICE FX UK companies and principal companies are summarized in the table below:

Legal entity – satellite Activity/License Principal
Name Register Name Register
Ice Castle Register of legal entities Brokerage AFX Markets Ltd. Register of legal entities
FCA Register FCA Register
Ice Quotes Register of legal entities Funds management ForexMaxLtd. Register of legal entities
FCA Register FCA Register

Thus, Ice Quotes manages client funds in Ice Castle (similar to how ICE AM manages client funds in Swissquote). Despite the working model, which is complicated at first glance, this will not affect the convenience and safety of customers, with the exception of the need to sign not one but two client agreements (for brokerage and for fund management).

There will be investment services (to someone’s regret): all A-rated indexed managed accounts will be publicly presented.
A closed-type investment system (the license assumes at least theoretically responsibility for the results of managing client funds).
FSCS insurance of 55k pounds is distributed: client funds will be in the accounts of AFX Markets, which has an FCA license.

The specific type of investment system is not defined: at the moment, our MA system does not go contrary to the legislation. But without additional consultations, you can’t claim with 100% certainty that the PAMM component will be allowed.
In any case, the company plans in 2018 to develop its own counterpart to the MAM account, called “ICE-MAM”. Among other advantages over the classical MAM, there will be the opportunity to invest funds 2-4 times lower than necessary for copying all trades with a minimum volume of 0.01 lot to the investor’s account. I will also describe this development in more detail, someday.
Accordingly, even if the PAMM component cannot function (only the MAM component), the minimum investment in MAM will be 2-4 times less than the current ones, which will allow a significant part of clients to invest having small deposits.

The functionality and services of ICE FX UK will differ in several ways from the functionality and services of ICE FX. This is due to the peculiarities of the British jurisdiction and AR activities. I will throw more light on the differences in a separate article.

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