Online brokerage Markets.com has appointed Joe Rundle as CEO, according to publicly available information on LinkedIn. He is joining the company with a raft of experience in the industry.
Before Markets.com, Joe Rundle was overseeing the trading operations at ThinkMarkets and ETX Capital. He was also responsible for the development of partnership agreements at both companies. After over 12 years at ETX Capital, he worked at FCA-regulated brokerage ThinkMarkets for a little over a year, before leaving his position there.
Joe Rundle also held a Managing Director role with GKFX in August 2016.
Regulatory challenges
The appointment of Rundle as CEO of Markets.com comes at a challenging time for the industry, as most retail brokers are eagerly awaiting more information on regulation. The European Securities Markets Authority (ESMA) has been working on the final new rules for handling retail investors for well over a year.
Market expectations have been preparing for a publication of the final rules on retail trading at the end of this quarter. Brokers will have close to half a year to implement the necessary changes to their offerings in order to be able to continue on-boarding clients from the European Union.
Consolidation expected and marketing shift
The way brokers are marketing their services is due for a change, as are their operational models. With the expectation that leverage will be reduced to 1:30 or thereabouts, market making brokers are expected to shift their business model due to the significantly different client behavioral patterns at lower leverage levels.
Brokerages are also facing the prospect for additional capital requirements, as negative balance protection becomes mandatory. Capital-intensive regulations in the US have essentially destroyed the retail FX industry in the country, leaving clients with limited options.
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