A US court has approved the bankruptcy dismissal filing of introducing forex broker (IB) Avail Trading Corp., operating under the brand ATC Brokers, which was filed after the company reached settlement with a client, online financial media Finance Magnates reported on Thursday.
This means that ATC Brokers’ bankruptcy case has come to an end. The broker filed for bankruptcy with the California Central Bankruptcy Court on 9 February, 2016. According to the media, the dismissal claim was filed on 13 April.
ATC Brokers has settled with former client George Bos. The terms and value of the settlement were not disclosed.
In the beginning of March, ATC Brokers issued a statement explaining the matter from its viewpoint. The company said at the time that it filed for bankruptcy after it found itself involved in a litigation brought forth by a forex client. The client, according to the notice, pursued legal actions after back in 2012 his selected money manager sustained losses in the account and the client suffered financial losses. The broker ensured that the started bankruptcy procedure aimed to help strengthen its operations and was not related to its financial standing.
The company referred to Chapter 11 of the US Bankruptcy Code, or the so called Reorganization chapter, which is usually used by entities to gain some breathing space while reorganizing their finances and arraigning payment plans with creditors. In such cases, companies usually intend to continue their operations after the bankruptcy proceedings have been finalized. Therefore, since the bankruptcy procedure is finalized, it is expected that ATB Brokers would continue its operations as an introducing forex broker as normal.
“We are pleased that a settlement has been reached. Our focus will resume on the growth of the US company by integrating new technology and establishing an alliance with a reputable Forex Dealer Member that will remain dependable for years to come,” an ATC Brokers spokesperson said, as cited by Finance Magnates.
However, ATC Brokers is still facing a big problem, since Forex Capital Markets, or FXCM, for which it was an IB, discontinued its partnership with the company last month. Only time will tell what will happen with the no-more troubled introducing broker.
Avail Trading Corp. is a member of the National Futures Association (NFA) and is a registered IB with the Commodity Futures Trading Commission (CFTC).
California-based ATC Brokers was set up in 2005, while its UK sister company was established and license by the Financial Conduct Authority (FCA) in 2014. The UK company was not affected by the bankruptcy issues. The two brokers offer trading in forex and both support the MetaTrader 4 (MT4) trading platform and its Trade Copier service. The US unit, however, also offers trading in futures via the ATC Trader, which is its own proprietary platform for futures trading.
Source: Finance Magnates