Forex Weekly Look Back: Plus500’s investors deny Group CFO bonus, ISRA’s Jeff Wilkins speaks about P&L and risk

Looking back at the most intriguing and popular industry news from the past week between 14th and 18th of September on LeapRate.

Online gaming and financial trading giant Playtech PLC (LON:PTEC) released its trading volumes for the first half of 2020, which ended on 30 June. The company has benefited from making timely decisions in response to the Covid-19 induced market volatility and has delivered a resilient performance for the first half of the year driven by its financial division TradeTech Group (which includes CFH, Alpha,

Global investment platform eToro announced expanding their investment in football clubs across Europe with the launch of twelve new sponsorships in the UK and Germany. As an active football club sponsor in Europe, eToro will extend its UK Premier League partnerships with Crystal Palace, Everton, Leicester City and Southampton. In addition to that, it will also include West Bromwich Albion and Burnley to its portfolio.

The Israel-based online trading broker Plus500 held its annual general meeting (AGM) on Wednesday. The CFD trading platform issued a trading update ahead of the AGM reporting continued good performance for the second half of the year. At the meeting, most resolutions and re-elections looking for shareholder approval were passed, including the election of Anne Grim to the Board as a Non-Executive director. However, the resolution for bonus for the Group’s CFO Elad Even-Chen was withdrawn.

Retail brokers generally state that around 75% of retail investors lose money – the majority of these losses are in the spread value of their trades (because they are trading on wide spreads) rather than because they call the market wrong. However, studies have shown that over the long-term (if you take out transaction costs and spreads), clients’ trading P&L is generally no better or worse than that of their brokers. LeapRate spoke to Jeff Wilkins, Managing Director of IS Risk Analytics (ISRA), to explore this topic further.

Online FX and CFD trading and cryptocurrencies provider FXCM announced expanding its trading offering of available trading instruments with the addition of Volatility Index CFDs. Volatility Index CFD offers tracking the future volatility markets, rather than the stock prices and with that provides clients with the opportunity to profit directly from the unprecedented market, irrespective of which way the market is heading.

The pan-European market operator Euronext announced the appointment of Aurélie Cohen as Chief Communications and Investor Relations Officer. At his new position Cohen will lead all internal, external and financial communications for the Group. The exchange also confirmed submitting a non-binding offer to London Stock Exchange Group plc to acquire Borsa Italiana but pointed out that there still cannot be certainty of a transaction.

Forex Weekly Look Back

CLS, the market infrastructure provider of risk mitigation services to the global FX market, has released its operating metrics for August 2020. The average daily traded volume submitted to CLS was USD1.649 trillion, down 0.5 percent from USD1.657 trillion in July 2020.

Global technology provider First Derivatives announced the appointment of Steve Fisher as a Non-Executive Director of the Group. To his new position at First Derivatives, Fisher brings vast product development experience in technology and software ranging from telecoms to enterprise software and online transaction platforms.

Multi-asset financial products provider, Equiti Group announced obtaining a license from the Financial Services Authority (FSA) Seychelles under its newly-registered entity Equiti Brokerage (Seychelles) Ltd. The entities within Equiti Group already have regulatory licenses from the authorities in the UK, the UAE, Jordan, Kenya, Armenia and now the Seychelles.

Cornerstone Brands announced that the UK Financial Conduct Authority (FCA) approved the acquisition of FXPress Payment Services Ltd. The regulatory approval completes the acquisition of the regulated Authorised Payment Institution FXPress and the company is now a wholly-owned subsidiary of Cornerstone. In addition, the company also received FCA approvals for the acquisition of Avila House by FXPress.

Virtu Financial, Inc. (NASDAQ: VIRT), a financial services and technology provider, announced expanding its execution services offering with the launch of post-trade analytics tool, Prism Frontier, designed to provide transparency and forensics around client executions.

FX Broker Ballinger & Co. today announced appointing Will Tracey as Executive Chairman and largest shareholder. At Ballinger & Co. Tracey brings to the leadership team years of experience at the forefront of deliverable FX industry. In his new role, he will be responsible for Ballinger & Co.’s trading operations and sales activity.

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