FX week in review: Deltastock UK shut, TradeTech and IG results, more sports sponsorships
What happened to Deltastock’s UK operation Delta Financial Markets Limited, and its FCA license?
How did financial results look like from TradeTech, Markets.com, and IG Group? (And how did shares of the respective companies react?)
What has the feedback been from AvaTrade’s AvaProtect trade insurance been? (And, how does it really work?)
What new hookups between Retail FX brokers and top sports teams were reported?
Which senior executive moved from FXPrimus to Point Nine?
Answers to these questions and a whole lot more appeared first or exclusively this week at FNG. Some of the top forex industry news items to appear on the pages of FNG this past week included:
Exclusive: Deltastock closes UK subsidiary Delta Financial. FNG Exclusive… FNG has learned that Bulgaria based Retail FX brokerage group Deltastock AD has taken steps to close down its UK subsidiary Delta Financial Markets Ltd. Delta Financial had operated the website dfmarkets.co.uk, which now redirects to the main parent company site deltastock.com. The UK company’s compliance officer Vladimir Kisyov – who had been with the Deltastock group since 2004 – has resigned. The one remaining UK company director, Deltastock co-founder and CEO Nikolay Nedkov, signed off on an “Application to strike the company off the register” indicating that Delta Financial Markets Ltd. will be dissolved.
TradeTech saves Playtech’s 1H-2020 with “exceptional performance”. TradeTech to the rescue. With its gaming operations suffering somewhat due (mainly) to the COVID-19 global pandemic, online gaming and financial services company Playtech (LON:PTEC) reported its first half 2020 results and gave a lot of credit to its B2B/B2C forex business TradeTech for helping it avoid what would have been a very bad six month result. That being said, as was first reported at FNG in late August Playtech is actively pursuing the sale of TradeTech, stating formally now that it “continues to evaluate all options for TradeTech, and… is in early stage discussions with a number of parties regarding a potential sale.”
IG Group shares pop 7% despite 19% drop in Q1 Revenue. It isn’t often that a company, particularly in the financial space, reports a large drop in quarterly revenues yet sees its shareholders cheer and bid up the stock. But that seems to be just what happened this morning at IG Group. IG, the largest of the UK based online retail brokerages, reported top-line Q1-2021 results today (IG has a May 31 fiscal year end, so Q1-2021 is really calendar June-July-August 2020) which included net trading revenue of £209 million. Historically, that’s a great result for IG and one of its best quarters ever, at least revenue-wise.
FX and CFD trading insurance: Dáire Ferguson on AvaProtect. One of the more interesting recent innovations we’ve seen in the Retail FX and CFD space has been trading insurance. For a certain premium, traders can limit their downside risk on any specific trade. Hedging trades and overall trading books is a common technique used by institutional traders, but now with trading insurance it is also accessible to retail traders. And one of the first brokers to launch trading insurance is Ireland based and regulated AvaTrade, with a product called AvaProtect. We caught up recently with AvaTrade CEO Dáire Ferguson, here is what he had to say.
In FX industry executives moves and news this week:
❑ Exclusive: Point Nine hires bus dev exec Christina Barbash from FXPrimus.
❑ eToro co-founder partners in new Team8 Fintech fund.
❑ Plus500 adds Fidelity alum Anne Grim to its board.
❑ First Derivatives adds ex eBay CTO Steve Fisher to its board.
❑ Olympic medalist Lauren Gardner joins EC1 Partners to head Electronic Trading.
❑ Retired PwC partner Sian Herbert replaces Bob Head on Equals Group board.