This week brought major shifts across crypto and retail trading, with BitMEX preparing to leave the market just as perpetual swaps gain broader acceptance. Regulatory developments also continued to reshape how digital assets are traded, while exchanges and brokers responded to changing investor demand and evolving market structure.
Elsewhere, retail trading activity remained historically elevated despite easing from recent highs, several brokers reported record performance, and new initiatives emerged across proprietary trading and exchange infrastructure. Together, the week's developments reflected an industry balancing growth, regulation and structural change.
BitMEX to Close as the Market It Helped Create Moves On
BitMEX announced it will shut down its trading platform on 23 September, ending the exchange's 11-year run after a strategic business review. New account registrations have already stopped, while existing trading will gradually move into reduce-only mode before positions are closed ahead of the final shutdown.
The exchange transformed crypto derivatives by popularising perpetual swaps during the 2017-18 bull market, offering traders highly leveraged products that became an industry standard.
Its decline came after years of regulatory pressure, including US penalties over anti-money laundering failures, as regulated US venues increasingly introduced domestic perpetual products that challenged the offshore model BitMEX helped establish.
Dear BitMEX Users,
Today, we share with a very heavy heart that BitMEX exchange will shut down its operations, effective 23 September 2026 at 04:00:00 UTC.
The owner and operator of BitMEX, HDR Global Trading Limited, has made the difficult decision to close operations…
Perpetual Swaps Continue to Expand Beyond Their Creator
While BitMEX is disappearing, the perpetual swap is entering a new stage of growth. The product has expanded beyond offshore crypto exchanges into regulated US markets, decentralised trading venues and, increasingly, traditional asset classes.
Its funding-rate mechanism, liquidation engine and insurance fund helped create a continuously traded leveraged instrument that attracted both retail traders and professional market makers. Competitors broadened the model through stablecoin collateral, integrated spot markets and wider product ranges, eventually overtaking BitMEX in liquidity.
The next phase is expected to see perpetual contracts compete more directly with traditional leveraged products as exchanges adopt round-the-clock synthetic trading across a wider range of assets.
US Opens Defined Regulatory Routes for Crypto Perpetuals
BitMEX's closure also highlighted how the US regulatory landscape has changed since offshore exchanges first developed crypto perpetuals. The Commodity Futures Trading Commission has withdrawn earlier guidance, approved regulated bitcoin perpetual products and established clearer frameworks for exchanges and intermediaries offering perpetual contracts.
Regulated venues including Bitnomial and Kalshi now have defined paths to list domestic products, while Coinbase Financial Markets can provide access to certain foreign perpetuals under specified conditions.
Although offshore exchanges continue to dominate global volumes, brokers and exchanges now have identifiable regulatory routes into the US market, provided they meet the operational, disclosure and risk-management requirements attached to continuous trading.
BDSwiss Offshore Business Appears to Go Offline
BDSwiss appears to have shut down its offshore retail business after its global website stopped functioning and new account registrations were disabled. Visitors are now redirected to a login page branded as BDS Markets, while attempts to create new accounts are rejected.
A screenshot of new signup page on BDSwiss with the message "cannot create account"
Although the broker's Seychelles licence remains listed as active, Finance Magnates was unable to obtain clarification after its press contact email bounced. The development follows the withdrawal of the group's Cyprus licence, a corporate rebranding and a significant staff exodus over recent years.
Meanwhile, customer complaints on Trustpilot have continued to highlight withdrawal issues and disputed account transfers involving former BDSwiss clients.
CFI Reports Record First-Half Trading Activity
Ziad Melhem, CEO at CFI Financial Group (Source: CFI)
CFI Financial Group posted its strongest first-half performance on record, reporting $5.34 trillion in trading volume during the first six months of 2026. Second-quarter volume reached $3.03 trillion, more than doubling from a year earlier, while active client numbers and executed trades also increased.
Metals generated the highest trading activity, followed by equity indices, with mobile platforms accounting for most client transactions. During the quarter, CFI also expanded into additional markets, securing regulatory approval in Brazil, extending its Latin American presence and introducing new products in the Gulf region. The company said it now operates through 15 regulated entities worldwide.
Two Brokers Cross the $2 Trillion Monthly Volume Mark
FM Intelligence's second-quarter data showed EC Markets and TMGM becoming the first brokers to exceed $2 trillion in average monthly trading volume during the same quarter. EC Markets led the rankings with an average monthly volume of $2.11 trillion, narrowly ahead of TMGM.
The milestone reflected continued consolidation among the industry's largest brokers even as the broader market cooled from first-quarter records. FM Intelligence also announced that its long-running quarterly PDF report will be replaced by a continuously updated Data Lab service, providing rolling broker rankings, trading volumes and market analysis instead of quarterly snapshots.
Retail Broker Volumes Ease After Record First Quarter
Retail FX and CFD trading volumes moderated during the second quarter, according to FM Intelligence, falling 9.3% from the record levels reached in the previous quarter. Despite the decline, activity remained broadly in line with the same period last year, suggesting that trading demand has stayed historically strong.
Beneath the headline figures, the broker rankings changed significantly as several firms climbed rapidly over the past 12 months. The data also showed that many of the largest brokers now generate most of their reported trading volume outside traditional foreign exchange, with indices, commodities, equities and crypto products accounting for the overwhelming majority of activity.
Former Citadel Executives Launch New CFD Venture
Kevin Kimmel, Co-Founder and CEO, Epic Markets, Source: LinkedIn
Former Citadel Securities executives Bryan Seegers and Kevin Kimmel emerged with a new brokerage venture after securing a $10 million pre-seed investment from London-based venture capital firm Karatage. The startup, Epic Markets, plans to build a multi-asset brokerage platform focused on institutional-grade execution for retail traders.
Public details remain limited, although regulatory disclosures on the company's website indicate it intends to offer contracts for difference. No regulatory licences have yet been announced.Bryan Seegers, Co-Founder and CCO at Epic Markets
The unusually large pre-seed funding round stands out both within the CFD industry and the wider venture capital market, reflecting investor confidence in the founders' market structure and electronic trading experience.
London Stock Exchange Confirms Plans for Overnight Trading
The London Stock Exchange confirmed plans to launch a separate overnight trading venue during the first half of 2027, initially focusing on exchange-traded products rather than individual shares. The platform will operate outside the exchange's normal market hours to serve global investors seeking greater flexibility, particularly in Asia.
The move reflects growing demand for extended trading as crypto platforms and several US exchanges continue expanding round-the-clock market access. The exchange said retail demand is currently driving the initiative, although it expects institutional participation to increase over time as the market develops and additional products become available.
Liquidity Questions Remain Over Extended Trading
Despite the launch plans, questions remain over whether sufficient liquidity will exist outside traditional market hours. Critics argue that offering exchange-traded products without the underlying shares may complicate hedging for market makers and result in wider spreads during overnight sessions.
Lower trading activity could also increase volatility if large orders enter relatively illiquid markets. Similar concerns have accompanied extended-hours trading initiatives in the United States.
While exchanges see longer trading hours as a way to meet changing investor expectations, particularly among retail traders accustomed to crypto markets, the commercial success of continuous equity trading will ultimately depend on sustained liquidity.
Vietnam Targets Retail Traders Using Offshore Crypto Platforms
Vietnam will begin fining individuals who trade digital assets through unlicensed exchanges from 1 September under a new regulatory decree. Retail investors using unlicensed platforms could face penalties of up to VND50 million, while higher fines apply to certain restricted assets.
The measures mark a significant shift by placing enforcement directly on end users rather than exchanges alone. The country also plans to license only a limited number of domestic crypto platforms under strict capital and ownership requirements. For exchanges and brokers, the rules increase the importance of customer verification, geofencing and broader compliance when serving Vietnamese clients.
MiCA Review Opens New Debate Over Prediction Markets
The European Commission's review of the Markets in Crypto-Assets Regulation entered a new phase as Brussels formally sought feedback on whether crypto-based prediction markets and perpetual futures should fall within MiCA or existing financial markets legislation.
The consultation deadline has been extended until 30 September, giving industry participants additional time to influence future policy. The decision could determine whether prediction market operators gain access to a crypto licensing regime or become subject to the stricter rules governing traditional financial instruments.
With prediction markets expanding rapidly worldwide, the consultation could shape their long-term future across the European Union.
Financial Commission Introduces Certification for Prop Firms
The Financial Commission launched a voluntary certification programme designed specifically for prop trading firms, creating an independent framework covering trading rules, payouts, risk management and dispute resolution.
Firms that satisfy the required standards following an external review will receive certification and ongoing monitoring, while traders gain access to the organisation's independent dispute resolution process. The framework aims to introduce greater transparency and accountability to the rapidly growing prop trading sector by establishing common conduct standards and evidence-based assessments.
Industry participants described the initiative as a step towards improving confidence in a market that has historically lacked independent oversight.