FX week in review: Copy trading investigated, FXCM EU license, liquidity provider launches
Which regulator is reviewing the whole area of copy and social trading – and why?
Why (and where) did FXCM get a new regulatory license in the EU?
Which new FX liquidity provider has received a CySEC license?
Who did Markets.com hire to run its South Africa business?
Who is the latest celebrity investor in Jannick Malling’s Public.com?
All these top FX industry news stories appeared first or exclusively on FNG this week, including:
Australia’s ASIC investigating copy trading. Australia’s Sydney Morning Herald posted an article over the weekend, stating that Australia’s financial regulator ASIC has launched an investigation into copy trading – a service promoted by a number of Retail FX brokers allowing novice traders to “follow” or “copy” the trades of more experienced traders. eToro, which on its homepage calls for calls for traders to “join the Social Trading revolution”, was also a focus of the SMH article which noted that the broker has been using popular Hollywood actor Alec Baldwin to promote its services in a series of video commercials. In the ad promoting copy trading Baldwin explains to a simple minded sock puppet just how easy it is to copy trade.
Exclusive: FXCM gets CySEC license, FOREX.com applying. FNG Exclusive… The race to prepare for Brexit continues. FNG has learned that Retail FX and CFDs brokerage group FXCM has established a beachhead in Cyprus ahead of the end of Brexit’s transitional phase at year-end 2020. The company actually set up FXCM EU Ltd in the EU island nation in late 2019, and spent the better part of 2020 in an application process for a CIF license from Cypriot regulator CySEC. Even for established brokers such as FXCM (and FOREX.com, see more on that below), the CySEC licensing process is a thorough and lengthy one.
Exclusive: Match-Prime established as a CySEC-licensed liquidity provider. FNG Exclusive… FNG has learned that Polish/American based FX broker tech and solutions provider Match-Trade Technologies has set up a separate, independent Cyprus company called MTG Liquidity Ltd, which will operate under the brand Match-Prime. The new MTG Liquidity Ltd has applied for, and received (as of October 12, 2020) a CySEC CIF license. To run the new operation the group recruited a pair of fairly well-known and respected Cyprus-based FX industry veterans. Andreas Kapsos has joined Match-Prime as CEO. Andreas was previously Executive Director and COO of BrightFX Capital, and has also worked at CAPEX.com and Markets.com.
Robinhood challenger Public.com adds Tony Hawk to shareholder list, raises $65M. App based brokerage and social trading startup Public.com has announced that it has raised $65 million in new money, in a Series C financing round led by venture capital firm Accel. This news comes just days after comp Robinhood was reported to be looking at a $20 billion IPO. The company said that all of its other existing major investors are also participating in the round including Lakestar, Greycroft, Brianne Kimmel’s Worklife, and Shari Redstone’s Advancit Capital. Joining as new investors in Public.com are Dick Parsons, The Chainsmokers’ Mantis VC, and skateboarding legend Tony Hawk.
FX industry executive moves reported this week at FNG include:
❑ Exclusive: Markets.com hires former IG South Africa head Solomon Gounden.
❑ FXSpotStream hires Ripsy Arora as VP Relationship Manager.
❑ Shirley Garrood to step down from Hargreaves Lansdown’s Board.
❑ Plus500 issues stock grant of 116,045 RSUs to senior executives.
❑ Nuvei appoints Neil Erlick as Chief Corporate Development Officer.