Broking technology provider Tech Financials has announced that it is receiving a dividend payout from two of its subsidiaries. The company has a 51 percent stake in DragonFinancials, a company that is providing broking services to retail clients in the Asia Pacific Region and MarketFinancials, which is the firm’s market-making arm.
Tech Financials will receive $1.12 million from the retail brokerage firm and $340,000 from the market maker. Back in October 2015, TechFinancials partnered up with Optionfortune, a Hong Kong-registered company that is a partner in the B2C binary options trading platform that uses the technology provider’s software.
TechFinancials acquired a 51 percent stake in DragonFinancials, which started operating in January 2016. The B2C trading platform, focused on the Asia Pacific Region, declared an interim dividend payout of US$2,200,000. The figure is on top of the dividend payout of US$2,000,000 that it announced on the 1st of August 2017. The total figure is higher than a year ago when TechFinancials received a total of $2.53 million.
Bulgaria to Host International Crypto Conference: Sterlin Lujan 1st time in Sofia on StageGo to article >>
The MarketFinancials subsidiary that is wholly owned by TechFinancials acts as a market maker counterpart to the services provided by the group. The amount is in respect of 2016. Both dividends are payable by January 20th, 2018.
Diversification of income for binary options technology providers with brokerage subsidiaries is a common practice. For the past year and a half, firms have been focused on diversifying their exposure to clients that are primarily based Asia, where the product is not regulated.
European authorities have heavily cracked down on binary options products, forcing out regulated business with rigorous regulatory requirements. The FCA has recently made a statement that it is preparing to regulate the product, while European authorities are mulling an outright ban on brokers that are accepting clients from the EU.