Uncategorised Segregated Clients
- Your money is held in a segregated Client bank account, independent to the firm’s own money
- Your funds are not co-mingled with Onyx Markets’ own assets and money
- Money and funds are ring-fenced from creditors in the unlikely situation of Onyx Markets’ being liquidated
- We do not use your money for our own business activities such as hedging trades or as margin for our own hedging activities
What happens to the funds I deposit with Onyx?
If you are a retail client, or a professional client who has opted for your funds to be segregated, your funds are safeguarded in ringfenced client bank accounts under trustee arrangements, ensuring they remain your property at all times. This guarantees that your money is identified as client funds, protected from any claims, charges, liens, or rights of set-off by us or our creditors.
What happens if Onyx Markets / Onyx Capital Group goes into liquidation?
In the unlikely event of Onyx’s liquidation, all clients would be entitled to their share of segregated funds, minus the costs incurred by administrators in handling and distributing these funds.
Additionally, any shortfall of funds up to £85,000 may be eligible for compensation under the Financial Services Compensation Scheme (FSCS). This scheme, established by the UK government, serves as a safety net for customers of authorised financial services firms, typically covering investors (retail clients) and small businesses in cases of insolvency.
What happens to my money if Onyx’s bank used to hold client money goes into liquidation?
In the event of a bank or a third party where the firm holds your money goes into liquidation (known as secondary pooling), any losses would be shared among clients in proportion to the funds held with the failed bank or a third party.
These losses may be eligible for compensation under the Financial Services Compensation Scheme (FSCS), up to a limit of £85,000 per person, per institution, subject to other balances held with the same bank.
For more information on FSCS coverage and eligibility, visit their website at www.fscs.org.uk.
If you have any further questions, please contact us at trading@onyxmarkets.com or call us directly at 0203 097 5000
Non-Segregated Clients
What does non-segregated mean?
Non-segregated funds refer to client money that is not held separately from the company’s own funds. This means that such funds are pooled with the company’s operational or proprietary accounts and are not protected under the same rules as segregated client funds.
In the event of Onyx Markets’ liquidation, non-segregated funds would be treated as part of the company’s general assets, and clients with such funds would be classified as general creditors. This means they would have no specific claim over their deposited money and would share in any remaining assets of the company only after other secured creditors have been paid.
Why would anyone want funds to be Non-Segregated?
Brokers ask for margin as insurance against adverse mark to market movements on leveraged positions. For certain larger or institutional clients, the broker may be able to employ the client’s margin against its own requirement on corresponding hedge positions.
This is generally necessary for larger sizes, as it prevents client positions from becoming a drain on the brokerage firm’s capital and ensures execution costs can be kept low.
Individual and Corporate clients who are categorised as Professionals can sign a Title Transfer Collateral Agreement. This means their funds can be posted as collateral against the margin requirement their positions incur. This enables Onyx to offer extremely competitive margins even on much larger positions.
Please be aware you are sacrificing protection of your money and in the event of insolvency of the firm, you will ranked as a general creditor.
How do I apply to be Non-Segregated?
Eligible clients will be able to opt into a Title Transfer Collateral Agreement as part of the onboarding journey or after the account is opened.
You can also find out more details on the website, or by speaking to our sales team at: trading@onyxmarkets.co.uk or call 0203 097 5000.
Can a retail client be non-segregated?
No, they cannot. To reiterate, Retail clients are not eligible to opt into a Title Transfer Collateral Agreement.
Segregation measures are designed to afford additional protections to smaller clients. Consequently, client margin will start to rise quite steeply for larger positions, as the broker is effectively lending the client the money to cover for exchange margin, and the initial transaction cost may not adequately cover the cost of this.
