AxiCorp, an Australian broker of forex (FX) and contracts for difference (CFDs), has agreed a deal to buy One Financial Markets (OFM).
According to AxiCorp, the move comes amid anticipation of further consolidation in the global CFD and FX industry due to upcoming regulatory changes. The deal is connected to the recent regulatory changes implemented by the European Securities and Markets Authority, which went live at the start of this month and, amongst other things, offers a clampdown on leveraged trading.
“Overall demand for forex products is still rising, helped by market volatility and popularity of the product in emerging markets,” said AxiCorp’s chief executive officer Rajesh Yohannan. “But with new regulations coming into force this year, we believe consolidation will remain a key theme and expect to have the opportunity to make further strategic acquisition in due course.”
No financial terms were disclosed, however, the acquisition is predominantly cash-based and will be subject to customary regulatory approvals.
Founded in 2007, AxiCorp is a global online trading platform offering FX, CFDs, Commodities and other financial instruments to retail and institutional clients across the globe. The acquisition will strengthen its presence in a number of key markets including the UK, Middle East and Asia, with the combined operation delivering an estimated $2trn annual trading volume.
Through the purchase, AxiCorp will take over the entirety UK-headquartered broker’s business. This will include the firm’s existing staff, operations and all of its regulatory licenses. The deal will also see majority shareholder and founder, Khalifa Butti Bin Omeir, the Chairman of diversified investment group KBBO Group, take an equity stake in AxiCorp.
AxiCorp is fully regulated by The Australian Securities and Investment Commission (ASIC) in Australia, The Financial Conduct Authority (FCA) in the United Kingdom, The Financial Markets Authority (FMA) in New Zealand and The Dubai Financial Services Authority (DFSA) in Dubai.
Ashley Clarke, CEO at OFM said: “After building the OFM brand and network in several key markets, this (acquisition) is a great opportunity to get to the next level of growth. And it’s a privilege that we will be part of the global AxiCorp family as we pursue other markets.”
Established in London in 2007, One Financial Markets is authorised and regulated in the United Kingdom by the Financial Conduct Authority (FCA) and in South Africa by the Financial Sector Conduct Authority. The Company has wholly owned entities based in Hong Kong and Dubai that are regulated respectively by the local regulatory body.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
