Compliance & Regulatory Framework

Our Commitment to Compliance

IUXConnect is committed to maintaining the highest standards of regulatory compliance and transparency. As a CLOB exchange providing Direct Market Access, we operate under strict regulatory oversight and adhere to international financial standards.

Our compliance framework ensures fair, transparent, and secure trading for all participants while protecting market integrity.

Regulatory Framework

KYC/AML Program

Our comprehensive Know Your Customer (KYC) and Anti-Money Laundering (AML) program includes:

Customer Identification

• Government-issued ID verification
• Proof of address documentation
• Beneficial ownership disclosure
• Source of funds verification
• Enhanced due diligence for high-risk clients

Ongoing Monitoring

• Real-time transaction monitoring
• Suspicious activity detection
• Periodic account reviews
• Sanctions and PEP screening
• Automated alert systems

Reporting

• Suspicious Activity Reports (SARs)
• Currency Transaction Reports (CTRs)
• Regulatory filing compliance
• Cooperation with law enforcement

Market Conduct

We maintain strict market conduct standards to ensure fair and transparent trading:

Prohibited Activities

• Market manipulation and spoofing
• Front-running and insider trading
• Wash trading and layering
• Quote stuffing and momentum ignition
• Any form of market abuse

Surveillance Systems

• Real-time market surveillance
• Pattern recognition algorithms
• Cross-market monitoring
• Automated alert generation
• Regular compliance reviews

Transparency & Reporting

As a transparent CLOB exchange, we provide:

• Order Book Transparency: Full visibility into market depth and liquidity
• Trade Reporting: Real-time trade publication and post-trade transparency
• Best Execution: Price-time priority with no hidden fees or conflicts
• Regulatory Reporting: Comprehensive transaction reporting to authorities
• Audit Trail: Complete record-keeping for all activities

Risk Management

Our risk management framework includes:

• Pre-trade risk controls and position limits
• Real-time margin monitoring
• Automated circuit breakers
• Stress testing and scenario analysis
• Segregated client funds
• Insurance coverage and capital reserves

Conflict-Free Model

Unlike traditional brokers or market makers, IUXConnect operates a conflict-free business model:

• No Proprietary Trading: We do not trade against our clients
• No Payment for Order Flow: Orders are routed based on best execution only
• Transparent Pricing: All fees are clearly disclosed upfront
• Client Success Aligned: We profit from trading volume, not client losses

Audits & Certifications

We undergo regular independent audits and maintain industry certifications:

• Annual financial audits by Big Four accounting firms
• Quarterly compliance reviews
• ISO 27001 information security certification
• SOC 2 Type II attestation
• PCI DSS compliance for payment processing
• Regular penetration testing and security assessments

Whistleblower Protection

We encourage reporting of compliance concerns and protect whistleblowers:

• Anonymous reporting channels
• Non-retaliation policy
• Independent investigation process
• Confidentiality protection

Compliance Training

All IUXConnect employees undergo mandatory compliance training covering AML, market conduct, data protection, and ethical standards. Training is updated regularly to reflect regulatory changes.

Contact Compliance Team

For compliance-related inquiries or to report concerns: