DMM FX Australia Pty Ltd (DMM FX) today informed clients that the company will cease its current operations in Australia. DMM FX is part of the DMM Group, one of largest global provider of Forex online trading services not only in Japan but in the world in terms of volume.
Based and regulated out of Japan, DMM Securities, the parent company of DMM FX broke world records during 2013 when it produced a sustained period of $1 trillion monthly volumes during the summer months.
DMM FX which was founded in 2013, will stop processing client deposits from Monday 1 August 2016 and clients have been advised to withdraw all funds in their trading accounts by Friday, 19 August 2016.
The closure of DMM's Australian operations does not appear to be driven by any regulatory matter. In the memo to its current client base, the company described the closure as a "?business decision" but the suddenness of the decision is questionable.
Thirty five per cent of all retail FX order flow is based in Japan, largely concentrated within the domestic market, with a number of Japanese retail trading giants producing, in some cases, volumes of over $1 trillion per month, per company, primarily from order flow from Japanese customers. Operations outside the country seem to run up against many difficulties and DMM FX's sudden decision to exit the market and wind up its Australian operations is a case in point.
DMM FX is headquartered in Sydney, Australia and is regulated by the Australian Securities and Investments Commission (ASIC). It is one of dozens of Forex brokers doing business in Australia or elsewhere that are regulated by ASIC.