Trading Industry Roundup: Regulatory Scrutiny, Ownership Shifts, and the AI Liability Question

Artificial intelligence, shifting business models, and evolving regulatory frameworks defined the major developments across the financial trading sector this week. Brokers continued to expand their technological capabilities, while regulators scrutinized the risks associated with complex products and automated trading systems.

Elsewhere, significant ownership transitions occurred at London Capital Group, a major payments transaction took shape in Cyprus, and iFOREX revised its earnings guidance downward following a dramatic drop in July trading income. In the cryptocurrency space, Capital.com separated its UAE spot trading operations, and OKX reported a surge in user activity following Binance’s strategic retreat from the European market.

Who Is Liable When Autonomous AI Agents Make Costly Trades?

The rapid integration of artificial intelligence agents into active trading platforms has intensified the debate over legal accountability. As autonomous systems gain the capability to execute trades directly within client accounts, regulators have yet to establish clear guidelines defining liability when these algorithms incur substantial losses.

While several brokers have begun linking advanced AI tools to client accounts, the regulatory framework governing agentic trading remains in its early stages. Robinhood stated that customers bear responsibility for how their automated agents are configured and the subsequent actions they execute. However, industry lawyers and compliance experts argue that brokerages will inevitably face heightened regulatory obligations as the technology matures.

In the first few weeks of agentic trading on Robinhood, over 50,000 customers have opened agentic trading accounts and are trading millions of dollars per day of equities and options.

Writing and executing sophisticated strategies or optimizing your everyday spending no longer…

— Vlad Tenev (@vladtenev) June 18, 2026

Potential risk mitigation strategies include the implementation of kill switches and circuit breakers, with future regulatory frameworks likely to resemble “Know Your Agent” compliance protocols. The urgency of these safeguards is escalating as AI agents are granted broader access to trading infrastructures.

Scope Markets Adds Copy and Inverse Trading on MT5

Scope Markets has launched Scope Copy, a comprehensive copy trading service designed for the MetaTrader 5 platform. The new system enables users to replicate selected trading strategies while also providing the option to take the opposite position of a given strategy. Powered by PLUGIT’s YOONIT technology, the service underwent an extensive beta phase involving over 500,000 replicated trades before launching with more than 130 strategy providers.

Clients possess the flexibility to adjust risk parameters and position sizes. Strategy providers can implement performance fees ranging from 10% to 50%, utilizing a high-water mark mechanism that requires providers to recover previous losses before accruing new performance fees. Additionally, the platform’s inverse-copying functionality allows a provider’s buy order to be executed as a sell order within the client’s portfolio.

Basi and Worsfold Take Ownership of London Capital Group

London Capital Group (LCG) has undergone a significant ownership transition. Matthew Basi, the company’s managing director, and David Worsfold, its chief executive, have acquired the controlling stakes previously associated with Charles Sabet. Through MBDW Holdings, the two senior executives now hold ultimate ownership of the FCA-regulated entity.

The equity stakes were purchased from Walder Wyss, acting on behalf of creditors in the aftermath of FlowBank’s 2024 bankruptcy. FlowBank was the Swiss institution founded by Sabet. Official Companies House filings verified the ownership transition, though the financial details of the transaction remain confidential.

This transaction consolidates LCG’s operational control under its existing leadership team. Since shifting its business model, LCG has operated as an exclusive introducing broker for IG.

payabl. Reportedly Agrees €100 Million Deal for Half of the Company

Cyprus-based payments provider payabl. has reportedly negotiated a deal to sell a 50% stake to private equity firm ECM Partners in a transaction valued at over €100 million. Under the agreement, Group CEO Ugnė Buračienė will retain the remaining half of the company and continue to lead operations.

If finalized, this transaction would represent one of the largest fintech acquisitions in Cyprus by total value. payabl. specializes in payment processing and gateway solutions, offering foreign exchange and digital asset infrastructure services to the retail brokerage sector. The deal underscores robust institutional appetite for Cyprus’s expanding fintech ecosystem.

iFOREX Cuts EBITDA Outlook After July Income Falls 77%

iFOREX has significantly lowered its full-year 2026 adjusted EBITDA projection to a range of $0.5 million to $2.5 million. This adjustment follows a steep decline in trading revenue, with the CFD broker reporting approximately $720,000 in July trading income—a dramatic 77% drop from the $3.1 million recorded in the same month last year.

The company attributed the shortfall partly to the sudden appreciation of the Japanese yen following coordinated intervention by US and Japanese authorities, which negatively impacted the firm’s net client exposure. Additionally, persistently low market volatility depressed trading volumes through August.

Despite a 40% year-on-year increase in new customer acquisitions and an 8% rise in deposits during July, these operational gains were insufficient to offset the revenue contraction. By mid-August, the broker’s net cash position had decreased to approximately $10 million.

KNF Keeps CFD Review Open as XTB Shares Decline

Poland’s Financial Supervision Authority (KNF) has confirmed that its ongoing review of Contracts for Differences (CFDs) remains active. Regulators have not released a specific timeline or detailed potential restrictions, leaving market participants in a state of anticipation.

This regulatory uncertainty carries significant implications for XTB, the Polish brokerage where CFD products generate over 95% of total revenue. Although XTB is actively diversifying its portfolio into equities and spot cryptocurrencies, the regulatory review has coincided with a notable decline in the firm’s share price. XTB stock fell by 4.1% on Monday and another 2.7% by midday Tuesday, trading nearly 7% below the previous week’s closing levels.

Oil Volatility Drives Growing Retail Trading Demand

Heightened volatility in global oil markets is attracting a surge of interest from retail traders. Geopolitical tensions and supply-side concerns have driven prices higher, prompting increased trading activity across a diverse range of instruments, including CFDs, exchange-traded funds (ETFs), options, and futures.

Micro WTI crude oil futures experienced a 317% year-on-year increase in trading volume. Concurrently, the United States Brent Oil Fund (BNO) attracted $419 million in capital inflows during 2026. Upward price pressure stems from ongoing geopolitical uncertainty surrounding the US-Iran conflict, shipping route disruptions, and targeted strikes on Russian refining infrastructure.

Retail participation in Micro WTI Crude Oil (MCL) futures has driven YTD average daily volume to 271K contracts, with average daily open interest over 38K contracts. A significant portion of MCL volume continues to originate outside the U.S., as geopolitical uncertainty is… pic.twitter.com/7xV239ChcU

— CME Group Active Trader (@CMEActiveTrader) July 23, 2026

In contrast, both OPEC and the International Energy Agency (IEA) have recently downgraded their forecasts for global oil demand. This divergence between speculative trading volume and fundamental demand highlights the heightened risks associated with navigating a market heavily influenced by geopolitical headlines.

Capital.com Separates UAE Crypto Business Under New Licence

Capital.com is restructuring its operations in the United Arab Emirates by launching spot cryptocurrency trading through a dedicated, independently regulated affiliate named Capital Vault UAE. The broker’s existing CFD offerings will remain under the parent company’s current regulatory oversight.

Capital Vault has secured a full federal virtual-asset licence from the UAE’s Capital Market Authority. This authorization permits the affiliate to act as an agent or matching principal in virtual asset transactions and to provide institutional-grade custody services. Once operational, UAE-based clients will access spot crypto trading directly through the Capital.com application, with trade execution, settlement, and custody managed by the licensed local entity.

OKX Reports Surge in Activity Following Binance’s MiCA Retreat

OKX Europe has reported a substantial increase in user engagement and application downloads following Binance’s decision to withdraw its MiCA licence application in Greece and suspend onboarding for new European clients.

According to Erald Ghoos, CEO of OKX Europe, downloads of the exchange’s European application rose by nearly 160% within the 12 days immediately following Binance’s announcement. Furthermore, deposits originating from accounts linked to Binance surged by more than eight times during the same period.

Ghoos also emphasized the vast discrepancy between regulated and unregulated cryptocurrency trading in Europe, noting that an estimated 95% of European crypto derivatives volume still occurs on offshore, unregulated platforms. He asserted that onshore migration will require coordinated regulatory enforcement against offshore operators alongside expanded product offerings on licensed European exchanges.

Source link