FX week in review: Crypto liquidity for FX brokers, ETX Capital IB deal
It was a holiday-shortened trading week, which also meant a relatively quiet week of Forex Industry News.
But things were certainly still happening – in the “real” world as COVID-19 vaccination programs got underway in several countries even as infection rates continued to climb, and as the January 1 Brexit deadline looms. And, in the FX world as Brexit preparation was also on the minds of many and as companies prepare for 2021.
Some of the top FX industry news stories to appear this past week on FNG included:
Exclusive: GCEX to provide crypto liquidity for FX brokers via Your Bourse. FNG Exclusive… FNG has learned that London based regulated crypto exchange GCEX has inked a deal to partner with Your Bourse, to facilitate the distribution of liquidity to the Your Bourse client network. GCEX has also been temporarily registered in the UK under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 as a crypto-asset business until 9 July 2021, pending the determination of the company’s application by the Financial Conduct Authority (FCA). GCEX was founded and is run by former Saxo Bank executive and CFH Group co-founder Lars Holst.
Exclusive: Finotec revenues down 31% in 2019. FNG Exclusive… FNG has learned that FCA licensed institutional FX broker and brokerage services provider Finotec Trading UK Limited saw a 31% decline in Revenues during 2019. The company posted Revenues of £1.12 million in 2019, versus £1.63 million the previous year. Despite the decrease, Finotec had a small net profit of £60,000 in 2019, down from £70,000 in 2018. In recent years, Finotec has been transitioning its services to leverage on its Asset Management License, allowing for the management of client money traded either at Finotec or elsewhere.
Exclusive: ETX Capital raises £0.4M for Online Blockchain plc. FNG Exclusive… FNG has learned that Retail FX and CFDs broker ETX Capital has continued to grow its investment banking franchise, completing a £0.4 million capital raise for Online Blockchain plc (LSE:OBC). Online Blockchain is the UK’s leading listed blockchain company. The company incubates cryptocurrency startups and develops technical innovation in the blockchain space. We have previously reported that ETX Capital had pursued plans to use the FCA license of parent Monecor (London) Limited and branch out of its core CFDs brokerage business into other areas such as capital raising.
CySEC sets post-Brexit permissions for UK firms providing liquidity to Cyprus FX brokers. The Cyprus Securities and Exchange Commission (CySEC) has announced that it has established a Temporary Permissions Regime, which does not require physical presence in Cyprus for UK firms when providing investment services (including when performing investment activities) solely to professional clients and eligible counterparties, based in Cyprus. CySEC stated that this is in order to allow for a smooth transition to new contracts post-Brexit. The regulator stated that there are currently 52 UK firms providing services to Cyprus Investment Firms (CIFs). There are 86 CIFs that have trading arrangements with UK firms.
Interactive Brokers sets up entity in Ireland. Electronic trading major Interactive Brokers Group, Inc. (NASDAQ:IBKR) today announces that it has secured the authorization by the Central Bank of Ireland for Interactive Brokers Ireland Limited. The company expects to expand its staffing substantially over the next year to accommodate the ongoing strong growth of Interactive Brokers’ European business. The establishment of Interactive Brokers’ offices in Hungary and in Ireland is set to alleviate the concerns linked to Brexit that Interactive Brokers has raised in a recent SEC filing.
FX industry executive moves reported this week at FNG include:
❑ FXSpotStream hires Barclays AVP Pratik Mangarolia as Relationship Manager.
❑ Exclusive: MultiBank hires ATFX exec Ghadeer Ibrahim as Global Institutional Manager.
❑ Beeks Financial Cloud appoints Kevin Covington to Board.
❑ Teradata names Todd Cione its Chief Revenue Officer.