The prop trading sector dominated the week, with the sale ofMyForexFunds’ brand assets, the closure of FundedSeat and CMC Markets’ entryinto simulated prop trading highlighting changes across the market. Platformaccess, broker integration and the economics of trader payouts also featuredprominently.London's trading industry is coming home!Elsewhere, new retail trading data showed how heavily brokerprofitability is concentrated among a small group of winning clients.Regulatory developments remained important, with the UK opening its cryptoauthorisation process and EU regulators examining Binance’s use of reversesolicitation.Brokers also continued to broaden their offerings, while IGreported lower revenue expectations and industry analysis examined thechallenges around finfluencer oversight and technology ownership.MyForexFunds Brand Assets Sold to Dubai-Based FirmMyForexFunds’ brandassets have been sold by Traders Global to Dubai-based Global Solutions,headed by former MyForexFunds operations director Haider Raza. The deal,completed on August 1, covers the MyForexFunds and MFF trademarks, logos,websites, domain and official social media accounts. Financial terms were notdisclosed, and there is no confirmed date for a return of services under thebrand. Global Solutions has not assumed Traders Global’s liabilities, includingoutstanding trader payouts. Traders Global will continue handling thosepayments through Global Solutions under a service agreement. Before itsshutdown, MyForexFunds served more than 135,000 customers and generated atleast $310 million in fees, according to the US CFTC.FundedSeat Closes After Platform Access Limits GrowthFutures-focused prop firm FundedSeathas announced the closure of its operations after two years, citinglimitations in access to major trading platforms. The firm said therestrictions prevented it from reaching the growth required to become a largerplayer. FundedSeat will refund active accounts and pay pending withdrawals andpositive live balances. The company said monthly payouts had reached nearly$700,000. The firm did not support platforms including NinjaTrader andTradovate, while MetaTrader was unavailable because of licensing restrictionsaffecting prop firms.The closure highlights the importance of platformavailability for futures prop firms, as access to major trading systems hasbecome increasingly restricted across parts of the proprietary trading sector.CMC Markets Launches Simulated Prop Trading ProgrammeCMCMarkets has formally announced CMC Funded, a simulated prop tradingprogramme launched on October 1. Participants receive a $100,000 simulatedaccount with fixed performance targets and risk limits. Traders who pass theevaluation receive a Verified Trader badge and an “interview opportunity”through Verichain, the programme’s first referral partner. CMC said the serviceoperates separately from its listed financial services business and is not aregulated CMC Markets product. It does not provide live brokerage or fundedtrading accounts, hold client money or execute customer trades. The programmecovers multiple global markets, although CMC has not disclosed the fullinstrument list or detailed evaluation thresholds.Broker-Backed Prop Firms Shift the Economics of TraderPayoutsBroker-backed prop firms are increasingly using verticalintegration to change how they generate revenue from successful traders,according to an analysis by Shervin Arian, CEO of OmegaRatio Advisors.Independent prop firms typically rely on challenge fees, whilebroker-affiliated models can generate additional revenue when successfultraders move into brokerage accounts.That can include deposits, spreads,swaps, rebates and other brokerage-related income. The model also gives firmsgreater access to trading data and risk-management capabilities. Arian arguesthat established brokers entering prop trading have an advantage through theirexisting infrastructure and risk expertise. The analysis highlights a shiftfrom treating trader payouts primarily as costs towards integrating them intolonger-term client relationships.Top 1% of Winning Traders Capture 66.5% of Client ProfitsThe top 1%of winning retail trading accounts captured 66.5% of all client profitsacross iSAM Securities’ Radar network over the past year. The top 5% accountedfor 85.5%, while 79.5% of clients ended the period in loss. The data covers 12months through the middle of August and comes from Radar’s brokerage clientbase.It also shows that 1% of clients can account for 30% of a broker’s totaldrawdown. Brokers continued to rely heavily on B-booking, with 94.6% of tradingvolume handled this way compared with 5.4% A-booked. B-booking also represented98.2% of broker profit and loss across the dataset.FCA Opens Five-Month Window for UK Crypto AuthorisationThe Financial Conduct Authority hasopened a five-month application window for crypto firms seekingauthorisation under the UK’s new regulatory regime. Applications submitted byFebruary 28, 2027 can be assessed before the framework takes effect on October25, 2027. Existing anti-money laundering registrations will not automaticallyconvert into full authorisation.Firms must demonstrate that they can meet theFCA’s requirements, including explaining their operating model, products,customer segments and funding sources. The regulator began acceptingapplications on September 30 and has urged firms to start preparing early. Thenew framework will replace the current system, under which crypto exchanges andcustodian wallet providers primarily operate through AML registration andfinancial promotion requirements.EU Regulators Examine Binance’s Use of ReverseSolicitationEU regulators are examining Binance’suse of reverse solicitation after the exchange failed to secure a MiCA licenceand was ordered to wind down its EU operations. ESMA and regulators in France,Germany and Greece have requested information from Binance, according to theFinancial Times. Enforcement action, including fines, remains possible ifregulators conclude that the exemption was used improperly. Under MiCA, reversesolicitation allows non-EU firms to serve customers who initiate a relationshipentirely on their own initiative. ESMA has said the exemption should remain anexception rather than a way to circumvent the bloc’s licensing requirements.Binance said it complies with applicable rules and is working towards MiCAauthorisation.Capital.com Adds Direct Stock and ETF Investing in EuropeCapital.com has launched direct investing in stocksand ETFs across nearly all of its European Economic Area markets, expandingbeyond its established CFD offering. The service provides access to more than2,280 US and European stocks and ETFs and carries no commission on investments.The products are offered on an execution-only, non-advised basis and sitalongside the broker’s existing research, charting and portfolio tools.Capital.com said the launch supports both short-term trading and longer-terminvesting on the same platform. The UAE and UK are expected to follow in thecoming months, although the broker has not provided specific launch dates. Theexpansion adds direct asset ownership to its existing trading services.IG Lowers Q3 Revenue Outlook as OTC Retention FallsIGGroup expects third-quarter 2026 revenue of about £240 million, around 14%below the £280.1 million reported a year earlier. Net trading revenue isexpected at approximately £210 million, down from £249.5 million in the samequarter of 2025. The broker attributed the decline primarily to weaker OTCrevenue retention, which fell to about 70% from an average of 80% followingmarket-making optimisation measures introduced in the second half of 2025. OTCnet trading revenue is expected at around £155 million, down 18% year-on-year.At the same time, organic first trades increased by more than 25% and activecustomers rose about 17%. IG retained its medium-term guidance.Finfluencer Oversight Creates Monitoring Challenges forFirmsRegulatory enforcement against non-compliantfinancial influencers has increased across several major markets, whilefirms face difficulties monitoring the large volume of content published acrosssocial media. Seventeen regulators participated in the FCA’s Global Action Weekin April, targeting non-compliant finfluencers and firms involved in theirpromotion.The issue extends beyond individual influencers, as brokers andbanks can also face risks from misleading claims or inadequate disclosures insponsored content. Social media posts can appear and disappear quickly, makingcomprehensive manual monitoring difficult. Sarafina Wolde Gabriel, CEO of Rightlander,highlighted the visibility challenge for financial firms. The growing scrutinyputs greater focus on how firms monitor third-party marketing and promotionalactivity.Retail Brokers Reassess How Much Trading Technology toOwnRetail brokers are increasingly weighing thespeed and lower development burden of buying trading technology against thecontrol and flexibility of building more of their own stack.Purchasedplatforms can reduce the time required to launch core functions such as ordermanagement, charting, authentication, risk management and reporting. However,brokers can face vendor fees, integration constraints and limits on how systemscan be adapted as their businesses grow. The strategic question is which partsof the technology stack provide meaningful differentiation. Brokers may chooseto own areas such as client applications, trading tools, risk controls,execution logic or analytics while continuing to rely on third-party platformsfor core infrastructure. The balance between speed, cost and control remainscentral to the decision.This article was written by Tareq Sikder at www.financemagnates.com.