Today Mr. Clive Diethelm, CEO of PrimeXM, made good on his 3 day notice to terminate ON NET connectivity of his brokers to thousands of retail traders. He did it knowing full well that there may be traders affected by his actions, not necessarily CNS subscribers. He did it out of spite and completely disregarded the best interests of the retail traders who are customers of his very own customer brokers.
Our network continues to be one of the most connected on the Internet. The end latency increase to CNS subscribers in NYC is about .4ms (1ms total). Currently, in the UK, latency has increased to 2ms. We are working to drop that to 1ms by expanding an existing settlement free peering relationship with one of PrimeXM's paid transit providers.
We must unfortunately now list all PrimeXM hosted brokers as “NOT RECOMMENDED” on our popular latency chart. This listing is for no fault of their own except that they have chosen a technology vendor with a well-known reputation for irrational behavioral outbursts which can very easily end up costing retail traders money. In this case, it has resulted in many retail traders experiencing what could be a substantial change in their trading environment (if they trade with very latency sensitive strategies). This listing will remain until these brokers change to a technology provider operated by a more stable CEO.
We will be reaching out to every single trader potentially affected by Mr. Diethelm’s latest “episode” in order to identify any financially harmed. We will then bring an action in an appropriate court to recover their losses for them. If you have been harmed by Mr. Diethelm’s behavior, please contact CNS support. We will also be reaching out to regulators again to make sure they completely understand the situation and the risk PrimeXM poses to retail traders as a result of Mr. Diethelm’s demonstrated pattern of irrational and unstable behavior.
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