Prop firm certification is now available through the Financial Commission under a new voluntary program for proprietary trading firms.
The group said the scheme sets an independent standard for firms in areas such as trading rules, payouts, risk management, and dispute handling. Firms that pass an independent review can gain certification and use the Financial Commission certification badge. The program also brings the organisation’s external dispute resolution service into the proprietary trading sector.
Nikolai Isayev, Chief Operating Officer of the Financial Commission, said the prop trading industry has grown fast and now needs independent standards. He said the new framework brings transparent rules, fair enforcement, and clear payouts to a market that has lacked a credible independent benchmark. He also said the program gives firms a practical way to show they act fairly, while giving traders more confidence.
How Prop Firm Certification Works
The Financial Commission said it reviews firms using evidence from rulebooks, evaluation criteria, payout policies, risk controls, and dispute-handling practices. Certified firms will face ongoing monitoring and must renew their status each year. Therefore, the program does not end after the first approval.
The framework rests on five principles. These are clear trading rules, consistent enforcement, transparent payouts, responsible risk management, and access to the Financial Commission’s independent dispute resolution process. The organisation said the structure gives traders an independent path to escalate disputes. Meanwhile, it also lets firms contest claims of abusive trading behaviour with evidence.
Industry Figures Back Prop Firm Certification
Ruben Abitbol, Founder of RUBIK and a member of the program’s expert committee, said the sector needs more transparency and accountability. He added that firms and traders should rely on facts and benchmarks rather than pressure or perception.
Kathy Lien, Founder of Prop Trader Edge, called the initiative an important step for better clarity, consistency, and accountability in the proprietary trading industry.
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Source: Finance Magnates
