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Proprietary trading firm Prop Firm Match users are
facing uncertainty after affiliated MPFunds, a trading performance program, announced the
closure of its services. This step has left traders with no clear guidance from
the firm on potential compensation for affected users.
Prop Firm Match confirmed on X that it had no prior warning of MPFunds’ decision, adding to
the unease within the trading community. MPFunds has blamed regulatory shifts
in Singapore, claiming they impacted the firm’s ability to operate.
Impact on Traders
In a letter addressed to clients, MPFunds’ CEO Dean
Wong expressed regret over the closure, explaining that recent changes in
regulatory enforcement had led to the firm’s bank cutting off services without
notice. The closure came despite MPFunds submitting all necessary legal
documentation and appealing to reinstate its banking services.
“Due to the local landscape’s regulatory
decisions and strict enforcement, our bank has unanimously terminated all
services to us without sharing the reason, Wong mentioned on MPFund’s website.
“Despite the provision of all the necessary evidence and legal documents
requested from the bank, appeals to reinstate the account were closed without
any room for negotiations.”
Traders who had active accounts with MPFunds now face
an uncertain future, with no confirmation from the firm about whether
compensation will be provided. Prop Firm Match has stepped in, offering some relief
to traders who uploaded proof of purchase to their platform, with free
challenge accounts available depending on the status of their MPFunds accounts.
MPFunds announced today that they are ceasing operations following claims of regulatory changes and stricter enforcement in Singapore. Unfortunately, Prop Firm Match had not received any information about this before today’s announcement. At this time, MPFunds have not stated if… pic.twitter.com/uJiGH8de8A
— Prop Firm Match (@PropFirmMatch) September 10, 2024
The Fall of MPFunds
Wong’s open letter painted a picture of a company that
had once thrived on rewarding its traders but was ultimately undone by a
combination of regulatory pressures and internal challenges. He also revealed that MPFunds had been grappling with
increasing suspicious activities on its platform, with a small minority of
traders undermining the firm’s reward structure.
“In addition, an increase in prohibited and
suspicious activities amongst our users in recent months has also been found,
where traders collectively take advantage of our platform. Investigations into
the matter were conducted, and although most traders were not affected, a very
small minority threatened the integrity of our reward structure,” Wong
added.
Despite these operational challenges, Wong made it
clear that the closure wasn’t a failure of the company’s vision but rather a
consequence of external forces. “I didn’t fail the system; the system failed me. This decision was not made lightly, and I am truly sorry for what happened. I sincerely seek your kind understanding during this difficult time.”
This article was written by Jared Kirui at www.financemagnates.com.
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