V3 Markets Acquires NFA License to Operate as Floor Trader Firm

V3 Markets, a newly-established joint venture between electronic trading firm Lucid Markets and US FX broker FXCM, has been registered by the United States National Futures Association as a floor trader company. The company had made an application seeking to be registered as such in April 2014 and officially secured it on June 18 this year.

V3 Markets was issued a registration number of NFA ID: 0476349, which revealed its address as Chicago and the composition of its new management. The Chief Executive Officer is Mark Palchak, who recently served as the president of Infinium Capital Management. Patricia K Muchinsky is the Chief Operating Officer and the current Vice President, Business Relations at FXCM.

FXCM holds the majority stake in the venture (50.1%), while Lucid Markets owning the other. Dierk Reuter, a founding partner of Lucid Markets, holds a stake in V3 Markets that exceeds 10% and will also serve in the new venture as the director.  Other businesses with stakes in V3 Markets that exceed 10% include Meigsfield LLC and Cirali LLC.

V3 Markets’ registration with NFA comes a year after FXCM revealed that it was holding discussions of a potential deal with Chicago-based electronic trader Infinium, which was struggling with fierce competition and stricter regulations on high-frequency trading. In October, the company sold FXCM a note worth $12 million with maturity in March 2015. The deal was prematurely finalized in March 2014, With FXCM acquiring various prized assets.

The assets include five Infinium trading desks and other sophisticated high-speed trading infrastructure that was regarded by FXCM CEO Drew Niv as one of the world’s best. The infrastructure is now being utilized by Lucid Markets, which was purchased by FXCM in 2012, to trade using a wider choice of instruments.