FXOpen prepares for Brexit with acquisition of Cyprus FX broker AMB
Global retail FX and CFDs broker FXOpen has taken a further step in its preparations for Brexit and the possible end of EU-UK license passporting.
Like a number of FX brokers with an FCA licensed entity but lacking one somewhere in the EU, FXOpen rectified that situation by acquiring one via the purchase of Cyprus CIF-licensed AMB Prime Ltd (formerly known as Valutrades CY Ltd).
FXOpen said that the new European entity will operate under the name FXOpen EU, and has received regulator permission to commence operations on August 17, 2020.
Despite the implementation of Brexit as of the end of January 2020, the current transition period which will end as of the end of the current year (2020) still has EU-licensed firms allowed to “passport” their license to the UK, and vice versa. While no final decision has yet been made as to whether or not “passporting” will indeed continue into 2021 and beyond, the actions of a number of brokers on both sides of the EU-UK divide seems to indicate that it is expected that passporting will end at some point. Financial firms such as FX brokers will need a separate FCA and EU-country regulator license if they want to take clients from both jurisdictions, and not lose existing clients in both jurisdictions.
Commenting on the acquisition of AMB Prime, Gary Thomson, Chief Operating Officer of FXOpen UK commented:
“It’s an exciting time for FXOpen UK. We are delighted to expand our presence in Europe, which alongside the UK, is our key target market. An injection of capital into the business has enabled us to continue our expansion plans, which means regardless of any potential regulatory changes, we can ensure a seamless continuity of service to our current European clients, whilst continuing to expand our offering and grow our client base, both retail and institutional.”
Leading the new office in Cyprus, Maria Markidou, Director of AMB Prime Ltd, who will continue in her role at FXOpen EU, added:
“I am delighted and honored by the opportunity to be a part of the FXOpen team and head the European division. I look forward to working for a global forex broker that is focused on its clients, services and technology solutions. I am confident that we can build on these grounds and through investment enhance the brand in Europe and our clients’ experience.”
As noted above, from August 17 the website fxopen.eu will be available to accept clients. FXOpen EU said that it will offer its proprietary trading platform TickTrader, alongside other platforms.
FXOpen is controlled by Belarusian-Latvian entrepreneur Aliaksandr Klimenka.