FinTech Global Markets, Inc. (FTGM) had acquired SEC-regulated Sutter Securities in a move that will clear the path for it to offer new services through a registered broker-dealer arm.
The acquisition puts the company on a firmer regulatory footing with the Securities and Exchange Commission and positions it to offer a broader range of products, including blockchain-based securities. It also allows the platform to perform all operations in a regulatory compliant manner.
San Francisco-based Sutter Securities is a boutique investment-banking firm that offers corporate advisory services. The firm offers mergers and acquisitions, public and private financings, corporate restructurings, bankruptcy workouts, and security brokerage.
The move allows FTGM to utilize the acquired firm’s capabilities to create a turn-key solution for an alternative trading system which facilitates transactions in securities that are not publicly-traded.
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Many Fintech and blockchain firms have recently responded to US regulators’ classification of certain digital tokens as securities and therefore coming under the SEC’s supervision. Wall Street’s top watchdog says that any entity that wants to become an ATS needs to register with the SEC as a broker-dealer and become a member of a self-regulating organization, such as the FINRA.
Commenting on the news, Bob Muh, a Co-Founder of Sutter Securities, said: “I’m pleased to be working with the FTGM team as we move investment banking into the future,” said. Mr. Bob will remain as a Sutter executive and also joins the FTGMs’ Board of Directors.
Ron Reed, CEO of FTGM, added: “It is exciting to have the opportunity to work with Bob Muh and Gilbert Matthews, who boast over 40 years each of extensive investment banking experience. They and Sutter will accelerate our growth and expand the services we can provide for issuers and investors alike.”