Multi-asset broker CXM Group has agreed to buy Johannesburg-based TD Markets, Finance Magnates reports, which would give CXM a regulated South African entity for the first time. Terms were not disclosed.
CXM Group to Acquire South Africa’s TD Markets
CXM Group has agreed to acquire TD Markets, a Johannesburg-based broker, it has been reported. No price was given, and the report does not say whether the deal has completed.
CXM is a multi-asset broker, offering clients contracts for difference (CFDs), products that track an asset’s price without owning it. CXM holds licences in the Seychelles, Mauritius, the United Arab Emirates and Cambodia, but has no regulated entity in South Africa.
TD Markets, founded in 2015, has more than 50,000 active clients. It will keep its brand, leadership, licence from the Financial Sector Conduct Authority (FSCA, South Africa’s financial regulator), local client accounts and agreements with introducing brokers (IBs, firms that refer clients for a fee) and partners.
Finance Magnates quoted Amar Ramith, chief executive of TD Markets, who will continue in the role, as saying the priority throughout the process was finding the right long-term partner for the firm’s clients and team.
For CXM, the purchase would be its first South African regulated entity, and it plans to invest in Johannesburg as a base for expansion across Africa. After completion, CXM intends to add 24/7 gold trading, the TradingView charting platform, CXM’s own liquidity and execution, and an international partnership programme. Finance Magnates quoted Andrei Alekseev, chief marketing officer at CXM Group:
We are not here to change what clients value.
We are here to invest in it: in liquidity, in technology and in people on the ground in Johannesburg.
Andrei Alekseev, chief marketing officer, CXM Group
The report does not say which legal entity CXM is buying. TD Markets’ website lists TD Markets (Pty) Ltd as financial services provider (FSP) number 49128. Its disclaimer says client trades are with TDM Holdings LLC as principal, and it is not known whether that entity is part of the deal.
The deal follows other purchases of FSCA-licensed firms, including ACY Securities’ acquisition of Ingot Brokers South Africa and a similar move by Mitrade. Finance Magnates attributed the pattern to the high cost of the over-the-counter derivative provider (ODP) licensing route.
