The Financial Conduct Authority (FCA) has officially closed Direct Trading Technologies UK Ltd (DTT) after uncovering serious regulatory breaches. On March 27, 2025, the FCA revoked DTT’s authorization to operate as a regulated financial firm in the UK. In addition, the FCA froze the firm’s assets and prohibited it from offering any financial services going forward.
This action follows a fraud investigation that exposed critical failings in DTT’s operations, financial controls, and reporting systems. The FCA stated: “On 27 March 2025, we placed restrictions on Direct Trading Technologies (DTT), preventing it from carrying out regulated activities and freezing its assets.”
FCA Orders DTT to Close Trades and Return Client Funds
DTT has been ordered to close all open trades immediately and secure all client money. By early April 2025, the firm must fully exit all trading activities and return client funds. The FCA’s enforcement ensures that customers’ assets remain protected during this wind-down process.
Falsified Financial Records Trigger Investigation
The probe into DTT began in January 2025, when an internal audit revealed falsified financial documents. These documents were manipulated to conceal a major payment, prompting further scrutiny. The FCA found that DTT’s systems for fraud prevention and financial management were severely inadequate—a significant risk for a firm acting as a matched principal broker.
According to the FCA, a DTT employee manipulated audit records in an attempt to hide misconduct. Poor internal controls and weak oversight enabled this to happen undetected.
Governance Failures and Lack of Cooperation
The FCA’s investigation highlighted poor governance within DTT. Senior management failed to implement necessary financial controls or regulatory procedures, leaving the firm exposed to fraud and operational risk. The company also failed to cooperate fully with regulators, providing delayed and unclear responses during the audit process.
Impact on Clients and Investors
As of March 28, 2025, DTT is barred from accessing its assets without FCA consent. The company must prioritize client fund recovery and has been banned from offering any regulated trading services. Customers will no longer have access to DTT’s trading platforms, but the FCA assures that client funds will remain protected.
Conclusion: A Warning to the Financial Industry
The FCA’s closure of Direct Trading Technologies serves as a strong reminder to financial firms: lack of transparency, poor governance, and fraudulent activity can lead to severe regulatory action. This case underscores the importance of robust compliance, ethical conduct, and cooperation with regulators in the financial sector.
