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Gain Capital UK Limited, a subsidiary of StoneX Group, has officially applied to cancel its authorization with the UK's Financial Conduct Authority (FCA). This regulatory update marks the end of an entity that has been authorized since December 2001 and operated the FOREX.com and City Index brands. StoneX had previously signaled this consolidation plan in January, moving its UK retail broker operations under StoneX Financial Ltd, especially after retiring the City Index brand following a 19% drop in retail FX and CFD revenues earlier this year.
The regulatory filing indicates that Gain Capital UK is no longer permitted to hold or control client funds, though it retains limited permissions to deal as principal while winding down operations. Meanwhile, the entity continues to hold a Category 5 license with the Securities and Commodities Authority in the United Arab Emirates, which allows for promotional and client-introducing activities without holding funds. StoneX intends to eventually transfer these Middle Eastern operations directly under StoneX Financial.
This corporate restructuring reflects a broader trend among global brokerages streamlining legal entities to reduce compliance costs and optimize operational efficiency. For industry participants and regulators, the consolidation under StoneX Financial shows how market consolidation impacts retail trading infrastructure across Europe and the MENA region.
