The success of CPT Markets UK, which is the trading name of brokerage platform Citypoint Trading Ltd, cannot be denied. The entity has managed to raise £200,000, which is the equivalent of $245,000 in private equity growth funding, accumulating over to £900,000 (more than a million when converted to US dollars) in the last nine months.
A Turning Point
When Allen Market Limited acquired Citypoint Trading, it was a turning point for the entity. The former is a holding business based in the UK. After the purchase was completed, the company was rebranded to CPT Markets UK, launched a new image and page, and has expanded its staff, among other things.
Citypoint Trading has been in the market since 2008, and it is known around the industry for offering customers and traders FX and CFD products. With clear goals, a plan to achieve them, and the necessary investments, it has come a long way in the last year.
The latest money influx that CPT Markets received was a total of £200,000. Prior to that cash injection, the company’s capital was standing at £1.850 million, but it has now surpassed the £2,050,000 (roughly $2.5 million).
The recent funding round is helping the firm to build its current catalog of products and offerings. Recently, the company got the approval from the FCA (Financial Conduct Authority) to upgrade to a “IFPRU €730k” license, having permission to offer the full scope.
The IFPRU €730k license is higher permission to offer more things: now, the FCA will let the broker trade with its customers as a principal, with no matched limitation.
The upgraded license also ensures full compliance with corporate governance, measures to mitigate risk, and acceptable liquidity. It also represents a marked improvement over its previous license, the Limited one.
The full-scope IFPRU €730k firm status is reserved for UK companies that have own base funds of €730,000, or $820,000), and they usually adhere to the European Securities and Markets Authority’s (ESMA) Markets in Financial Instruments Directive and FCA rules.
The publication previously reported that the FCA was entertaining the idea of forcing straight-through processing (STP) brokers to upgrade to full market makers status. It becomes a necessity, as firms need to ensure that they can cover negative balances that would result from potential customer losses by market volatility or unexpected turns.