🚨 REGULATORY URGENCY

The Regulatory Wave: 2025-2026

Global regulators are converging on proprietary trading firms. GTIXT provides the transparency infrastructure before enforcement arrives—giving firms time to prepare, traders confidence to choose, and institutions a benchmark to trust.

The Three Phases

👁️
2024-2025

Phase 1: Observation

Regulators in the EU (ESMA), UK (FCA), US (CFTC, SEC), and Australia (ASIC) began gathering data on proprietary trading firms following the 2023-2024 wave of firm collapses and trader complaints. This is the "quiet phase" where authorities build their understanding of the market.

Impact for Prop Firms:
  • Increased scrutiny on payout practices and trader complaints
  • Data requests from financial authorities becoming more frequent
  • Industry reputation under pressure from media coverage
GTIXT Role: Provides a voluntary, transparent framework that firms can adopt to demonstrate credibility during the observation period.
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2025

Phase 2: Formalization (Current)

Standards and guidelines begin to emerge. Regulators publish consultation papers, industry bodies form working groups, and early movers adopt compliance frameworks. This is when the "rules of the game" are written.

Impact for Prop Firms:
  • Need to participate in regulatory consultations or risk unfavorable rules
  • First-mover advantage for firms adopting transparency early
  • Market consolidation as weaker firms exit before enforcement
GTIXT Role: Serves as the de facto benchmark that regulators can reference. Firms using GTIXT can demonstrate proactive compliance.
⚖️
2026+

Phase 3: Application & Enforcement

Formal regulations take effect. Licensing requirements, capital adequacy rules, payout transparency mandates, and trader protection measures become law. Non-compliant firms face fines, restrictions, or closure.

Impact for Prop Firms:
  • Mandatory compliance with transparency and payout rules
  • Licensing and registration requirements
  • Penalties for non-compliance (fines, operational restrictions)
GTIXT Role: Firms already using GTIXT are ahead of the curve. The index becomes a reference for "what good looks like" in regulatory terms.

Regional Regulatory Timelines

Different jurisdictions, similar direction

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European Union

Q2 2025
ESMA consultation paper on prop trading
Q4 2025
Draft MiFID III amendments published
2026
Formal regulations likely in effect
EU typically leads on financial regulation. Expect strict transparency and trader protection requirements.
🇬🇧

United Kingdom

Q1 2025
FCA review of prop firm practices
Q3 2025
Guidance on payout transparency
2026
Licensing regime for prop firms
Post-Brexit, UK may move faster than EU. FCA has already signaled concern about prop firm practices.
🇺🇸

United States

Q2 2025
CFTC/SEC joint working group formation
Q4 2025
Public comment period on prop trading rules
2026-2027
State-level and federal regulations emerge
US regulation will be fragmented (state vs federal), but momentum is building after high-profile firm failures.
🇦🇺

Australia

Q1 2025
ASIC inquiry into prop firm practices
Q3 2025
Draft licensing requirements published
2026
Mandatory registration and reporting
ASIC historically strict on retail trading. Prop firms will face rigorous compliance requirements.

Key Takeaways

NOW is Critical

By 2026, compliance will be mandatory. Firms adopting transparency frameworks now will have a 12-18 month head start over competitors.

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Transparency = Survival

Regulators will require disclosure of payout rates, rule changes, and compliance history. Firms hiding data will struggle to survive.

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Measurement Matters

GTIXT provides the 5-pillar framework (Transparency, Payout, Risk, Legal, Reputation) that regulators are likely to reference.

🤝

Partnership > Solo

Working with an independent index like GTIXT signals maturity and reduces regulatory risk compared to "going it alone."

See What GTIXT Measures

Explore the full rankings, methodology, and integrity infrastructure that puts transparency first—before regulators require it.