Oxtail Holdings Ltd., led by young Canadian business mind Samuel Katallah, is showcasing his efforts to introduce government regulation on the forex proprietary trading industry. This initiative aims to protect traders from mistreatment and fraudulent practices that have long plagued the sector. Through its proprietary trading firm, AuraXtail, and its fintech sector, Aura X, the company plans to propose a comprehensive regulatory framework for Contracts for Differences trading.
This framework will soon be presented to the Alberta Securities Commission as part of an effort to register and regulate a prop trading firm for the first time in forex history. Future plans also include engaging U.S. regulators to establish mandates for CFD trading and proprietary trading firms operating within the United States. While this ambitious initiative will require significant time and effort, forex traders should not expect overnight change. However, this bold move by Katallah presents a pivotal step toward transforming the forex industry into a more professional, transparent, investor-friendly, and liquid market.
Forex prop trading, like cryptocurrency, remains largely unregulated and is often subject to practices that disadvantage the firm’s traders. AuraXtail seeks to address these longstanding issues and advocate for the global changes that traders have been calling for. This marks the beginning of a significant transformation in the industry.
The Regulatory Oversight
Led by Katallah, prop firm AuraXtail is about to introduce a regulatory structure that other CFD firms will most likely be expected to follow very soon. The firm’s presented model includes several key elements:
- CPA-licensed and CPAB-Regulated Auditors:
Auditing firms adhering to CPA or CPAB standards will independently validate AuraXtail’s claims of deploying real trading capital for traders who successfully pass the evaluation phase, rather than issuing simulated demo accounts. To uphold transparency, audits will be conducted with respect for data privacy, ensuring that only non-sensitive information is disclosed. The results of these audits will be made publicly accessible through recognized financial outlets and AuraXtail’s official website, providing detailed insights into the firm’s financials, cash flow, and internal capital allocations.
AuraXtail has also committed to publicly disclosing its cash flow plans, outlining the percentage allocation of evaluation fees toward operational costs, live trading margin, and stakeholder dividends. Touching on stakeholder dividends, the firm has indicated that its profit model relies on alternative profit streams, with minimal reliance on profits derived from evaluation fees for directors and its investors. Compliance with this model will be verified through regular audits conducted by the Canadian auditing firms, ensuring that AuraXtail remains accountable to its publicly disclosed financial commitments.
- Escrow Services:
Certified and licensed escrow agents in Canada will manage evaluation fee revenue, margin accounts, payouts, general cash flow, and all transactions between traders and the firm. This ensures that AuraXtail does not directly handle challenge fees, or mismanage margin against their public cash flow model, reinforcing trust and integrity in their live-trading environment. - Innovative Software by Aura X:
Developed by Samuel’s Aura X fintech division, their new software safeguards traders and firms alike. It prevents manipulative trading feed executions, unjustified account breaches, and fraudulent account claims. The software also protects against traders uploading fake trading data or manipulating trading histories. While initially focused on CFDs and forex trading, this technology will eventually expand to cover cryptocurrencies and other major trading markets. - Pursuing ASC Registration:
Oxtail Holdings Ltd., as the legal backbone of prop firm AuraXtail, is currently planning a registration with the Alberta Securities Commission. If this application is not successful, an equal or superior regulatory alternative will be sought. Even without ASC registration, the firm’s model is already designed to meet the highest standards of compliance and governance, and we can still expect the first official government registration in the CFD prop space soon.
In addition to this regulatory model, AuraXtail promises no payout restrictions or waiting times. The introduction of the new Aura X Debit Card and payment system enables same-second payouts, transforming how traders access their earnings.
The Dream
Katallah’s aspirations for AuraXtail extend far beyond its current focus on forex and CFDs. The CEO envisions a future where the firm eventually facilitates asset management, prop evaluations across multiple markets, including cryptocurrencies, options, futures, and traditional stocks. Even expanding Aura X into a global tech giant and one day releasing an Oxtail Holdings IPO. While this ambitious expansion remains in the conceptual phase, it signals the prop firms intent to become a global force in the financial district.
Patient Endurance
Behind all the noise of AuraXtail and its push to prop firm regulations, founder Samuel Katallah has a long past of trial and error. Accrediting his ability to keep pushing to his faith in Jesus, he is not ashamed of his past and has publicly disclosed every inch of it. From pursuing a music career in his early years, inventing a solar technology at 15, selling e-commerce products, losing his first 6-figures on the market, he has done it all and failed in every aspect of life, which is something he is extremely proud of. Samuel made an initial imprint on the financial sector after his first prop venture went viral by the massive 7-figure signing of #1 ranked FTMO prop firm trader “Bernd Skorupinski”. Samuel Katallah also accredits some of his inspiration gained through his relationship with trader Bernd Skorupinski, mentioning that he is a big reason as to why prop firm regulations will be in effect through AuraXtail. Samuel mentioned that previous prop ventures with VST were learning experiences and one big testing ground. He plans to soon rebrand that playing field as a free trading platform for prop traders to create a mass database of market executions that will be monetizing trading data supplied by traders: without the model of charging evaluation fees. Nevertheless, his sights are now dead set on AuraXtail and its mission to create a fair industry. Traders are now on the edge of their seat, anticipating the first evaluation offer hosted by the first government-regulated prop firm: AuraXtail.
