With a renewed focus on transparency and trader accountability, AuraXtail has re-emerged as a firm aiming to improve operational integrity in the prop trading space by expressing its plan for government regulation. While still in the early stages of its journey, the firm has started to outline plans that could push industry discussions toward higher standards of verification and third party oversight.
A Narrower, More Focused Approach
AuraXtail’s CEO has stated that its immediate focus is on improving how prop trading firms handle trader evaluations, execution transparency, and payout processes. Early technology concepts being explored under Aura X include verification tools designed to give traders better visibility into their trades, payouts, and account status. While their tech is still in development, the goal is to provide traders with independently verifiable data they can rely on and help reduce disputes and build trust in a space that often lacks both.
Governance Aspirations
AuraXtail has publicly committed to engaging Canadian auditing firms to review how trader evaluation fees are used within the business. The firm says it intends to publish selected audit findings, giving traders more visibility into the firm’s financial practices.
In addition to audits, AuraXtail has expressed interest in exploring discussions with regulators to better understand what regulatory alignment could look like for prop trading firms operating under newer models. The regulatory process is complex, but they believe it will be achieved in the near future.
A Long Road Ahead
While AuraXtail’s plans are still in the early stages, the company appears committed to pursuing verification first solutions that could help raise the bar in an industry often criticized for its lack of transparency.
For now, AuraXtail’s focus remains on getting the basics right by building trust through independent verification, improving trader transparency, and advancing discussions around what better prop firm governance could look like.
