It was a week of sector-changing Forex Industry News. And as usual, you read about it exclusively or first at LeapRate.
There were plentiful interesting stories we covered, but they all took a back seat to Cyprus regulator CySEC’s ban on bonuses, reported first at LeapRate, as well as changes to trading leverage and client withdrawal procedures. LeapRate first reported exclusively on CySEC’s plans nearly two weeks ago. (Seems like we have some excellent Cyprus-based news sources, thanks!). And since then, FX industry discussion on the topic is happening only at LeapRate in a series of expert guest posts (see here and here) and reader comments. There’s surely lots more fallout to come. Stay tuned…
In other news, some of our most popular, shared and commented-on posts this week at LeapRate included:
Brexit fallout: Ireland reports material increase in licensing inqueries from FCA regulated entities. In a speech made earlier this week, Central Bank of Ireland Deputy Governor Cyril Roux confirmed that there has been a material increase in the number of authorisation queries from UK licensed firms since the UK referendum. Apparently, an increasing number of FCA regulated brokers and other financial institutions are nervous about how Brexit will be effected, and whether or not regulatory passporting to the rest of Europe will remain in place.
Alpari becomes sixth retail forex broker to get a Bank of Russia license. After first having been rejected back in June, Retail Forex broker Alpari has finally been successful in getting a license from the Bank of Russia, allowing it to continue operating in the country where it has long been the #1 retail forex broker. Which other brokers have received their Russia Forex license? Which have been rejected?
Binary options broker EZTrader.com raising $11 million from Yorkville Advisors. LeapRate Exclusive… LeapRate has learned that binary options brokerage group EZTD Inc, which operates the EZTrader, Global Option, and EZinvest brands, has received an $11 million investment commitment from alternative investment firm Yorkville Advisors Global, LLC. EZTrader has sustained large losses this year totaling more than $11 million in the first nine months of 2016, leading the company to continually need to raise more money to remain in business. Who is Yorkville Advisors? And how is the investment structured?
Plus500 issues statement as shares slide 18%. Continuing our exclusive coverage of the fallout from CySEC’s decision to ban bonuses to retail traders, as well as impose leverage limits (and there’s sure to be a lot more fallout in the days and weeks to come)… Retail Forex and CFD broker Plus500 Ltd (LON:PLUS) issued a statement on Thursday, after its shares fell by nearly 18% during the day’s trading session on the London Stock Exchange. How is this related to the CySEC bonus ban?
True Trade to launch FCA regulated Retail Forex and CFD brokerage. The competitive FCA regulated brokerage market is getting even more crowded. A new brokerage calling itself True Trade Ltd has received an FCA licence, and is planning to launch in 2017. The company does not yet have an active website. So who owns True Trade? Where did the management of True Trade come from?
Teddy Sagi increases Playtech share sale to £329 million. Further to our report yesterday that online mogul Teddy Sagi planned to sell 32.2 million (or about 30%) of his Playtech PLC (LON:PTEC) shares, the company today announced that the sale was increased to 38.7 million shares, sold at a price of £8.50 per share – netting Sagi £329 million (USD $411 million). How much of Playtech does Teddy Sagi now own after the sale?
TechFinancials receives $1 million payout from binary options JV DragonFinancials. Binary options platform provider and operator TechFinancials Inc (LON:TECH) has announced that it has received a $1 million dividend payout from its DragonFinancials joint venture subsidiary. It is now becoming more apparent that the ‘turnaround’ in TechFinancials’ B2C division is less dependent on the company’s own OptionFair brand, which has seen declining business for the past year, and more on the the DragonFinancials China-focused binary options JV.
JPMorgan aggressively buying Plus500 shares, stake above 9%. LeapRate Exclusive… LeapRate has learned via regulatory filings that global investment bank JPMorgan Chase & Co. (NYSE:JPM) has increased its stake in retail Forex and CFD broker Plus500 Ltd (LON:PLUS) to 9.0%. With its increased holding, JPMorgan is now the second largest shareholder in Plus500. How much is JPMorgan’s stake in Plus500 worth? And who is the largest shareholder of Plus500?
IG Group reports strong second quarter for Fiscal 2017. UK online trading giant IG Group Holdings plc (LON:IGG) has issued a Trading Update covering its performance over the first six months of Fiscal 2017. IG has a May 31 year end, so the period covered is from June-November 2016. How is IG doing compared to some of its UK rivals?