It’s been a week of (rather wild!) change in the retail FX and CFD industry, with plenty of M&A activity hitting the headlines, along with license losses and broker license reinstatements, as well as the usual list of senior executive moves.
Some of the most read and commented on FX/CFD industry news that appeared in the last seven days on FNG include:
OANDA was put up for sale by CVC Capital. UK news agency Sky News reports that retail FX and CFDs broker OANDA is being actively bought by private equity firm CVC Capital. CVC acquired OANDA in 2018 for a reported $175 million. CVC has reportedly hired investment banking firms Nomura and Santander to oversee the sale. Nomura and Santander are apparently actively promoting OANDA to potential buyers. OANDA has been led by CEO Gavin Bambury, who is based out of London, since 2019. Without citing sources, Sky News reported that OANDA expects revenue this year to be around $175 million.
Saxo Bank hires Goldman Sachs to proceed with IPO or sale. Copenhagen-based Retail FX and CFDs broker Saxo Bank has announced that its shareholders – namely China’s Geely Group, co-founder and CEO Kim Fournais and Finland’s Mandatum Group – have decided to “initiate a review of strategic opportunities”. Saxo Bank and the shareholder group have collectively appointed investment bank Goldman Sachs as a financial advisor to assist them in reviewing strategic opportunities.
XTB shares fall 12% after Spain CFDs update. Shares in Polish Retail FX and CFDs broker XTB fell 12% on Monday after the company issued a statement on its plans in Spain. XTB said it will effectively cease all activities related to CFD marketing in Spain, in line with new regulations in the country. XTB receives approximately 11% of its revenue from clients based in Spain (2023 data), making Spain one of XTB’s most important markets after its home market of Poland (46% of revenue). Later in the week, Darwinex said it would stop offering CFDs to new Spanish retail clients.
BUX offloads FCA licensed entity to UAE CFD broker APM Capital. Amsterdam-based neobroker BUX has started offloading its non-core units after earlier this year it sold its main Dutch business BUX BV to Dutch bank ABN Amro. BUX announced this week that it has sold its FCA-licensed business BUX Financial Services Limited (BUX UK, formerly Ayondo Markets Limited) to Asseta Holding, the parent company of APM Capital, an Abu Dhabi-based online CFD broker serving mainly clientele of the MENA region.
Exclusive: Trive applies to cancel UK FCA licence. Exclusive FNG… FNG has learned that Retail FX and CFDs broker Trive has applied to cancel the FCA license of its UK subsidiary Trive Financial Services UK Limited as the group prepares to exit the UK market. The move comes after Trive Financial Services UK Limited, which operates under the Trivepro brand out of offices in London’s Canary Wharf, left its chief executive Adam Dougall earlier this year, as well as head of institutional sales David Papier, who joined CPT Markets.
Exclusive: LCG back in business, FCA license restrictions lifted. Exclusive FNG… FNG has learned that London-based Retail FX and CFDs broker London Capital Group Ltd (or LCG, on the website lcg.com) has resumed normal operations after ceasing all new client onboarding last month, although the existing clients were free to continue opening positions with LCG partner companies. The suspension of LCG’s operations, along with certain restrictions on the FCA license, followed the forced bankruptcy of the company’s parent company FlowBank in Switzerland.
Top FX industry executive moves reported on FNG this week included:
❑ Exclusive: Former Capital.com Australia CEO Laura Lin joins Banxa to lead Compliance.
❑ Exclusive: Scope Markets appoints Chris Andrews as Head of Operations.
❑ Andrew McCormick will replace Lule Demmissie as CEO of eToro USA.
❑ Exclusive: Stratos Markets (aka FXCM UK) adds retired BDO partner Richard Weighell to its board.
❑ Petros Kalaitzis is leaving Tools for Brokers for a CSO role at prop company FunderPro.