GMO-Z com Securities (Thailand) to discontinue all its business operations
GMO Financial Holdings, Inc. has announced that its consolidated subsidiary, GMO-Z com Securities (Thailand) Public Company Limited, which operates a securities business in Thailand, resolved at its Board of Directors meeting held on January 27, 2025, to discontinue all of its business operations.
The Thai subsidiary is expected to be dissolved and liquidated following the discontinuation of its business.
The Thai subsidiary commenced operations in November 2017. In November 2022, an incident involving unfair trading related to substitute securities accepted as collateral for margin trading occurred. This incident was primarily due to the concentration of lending to large-scale customers and specific collateral stocks, leading to a significant additional allowance for doubtful accounts.
Since then, the Thai subsidiary has undertaken comprehensive risk management reforms, including a complete suspension of new loans and stricter loss-cut standards. Despite these measures, continuous recognition of allowances for doubtful accounts due to further stock price declines resulted in continued deficits from the fiscal year ending December 2022 onward.
In response, the company terminated its margin trading service as of December 20, 2024.
After deciding to terminate its core margin trading service, the Thai Subsidiary explored the continuation of its cash equity trading service and the possibility of new business ventures.
However, it was ultimately determined that achieving profitability would be difficult, leading to the decision to discontinue all business operations.