UK's Financial Conduct Authority (FCA) is considering forcing the straight-through processing (STP) https://www.forexbrokerz.com/news/FC...s–media
Seemingly, FCA has sent a letter into a range of its own charges to inform them of prospective changes to the regulatory environment. According to the record, the watchdog is planning to induce the STP brokers to upgrade their licenses in order to ensure better negative balance protection from losses for their clients in case of extreme market volatility.
The main changes will be in regard to the capital requirements for the brokers and they would probably be raised in order to have the ability to cover a large negative balance. Currently there are different funding requirements for the FCA-regulated brokers, based on their own trading volume and amount of clients, but less than GBP 1 million.