Prop Trading Firms Seek Brokerage Licenses As FundingTicks Shuts Down, Topstep Faces Platform Outages

Proprietary trading firms are increasingly obtaining brokerage licenses and acquiring regulated entities to expand beyond evaluation models, a significant shift reflecting industry maturation. FundingTicks shut down in January 2026 after introducing retroactive rule changes that invalidated traders' profits, while Topstep experienced eleven confirmed platform outages in late 2025 that prevented traders from managing positions during market activity. The trend exposes a regulatory gap: existing supervisory frameworks built around clear separation between proprietary trading and brokerage business models remain ill-equipped to address hybrid operations where the boundary is rapidly disappearing.
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