Alpari UK Sells Client Data to UK Brokerage ETX Capital

In what is potentially a multimillion pound deal, clients will have the opportunity to get their outstanding balances which are

rp_Alpari-logo-300x196-300x1961111-300x1961-150x150.jpgThe Joint Special Administrators of Alpari (UK) Limited, Richard Heis, Samantha Bewick and Mark Firmin, who are overseeing the special administration of the brokerage by KPMG have confirmed the sale of client data to ETX Capital for an undisclosed sum.

The final amount will be determined after client data is received by the company buying the firm and depends on the number of clients who choose to deposit funds with ETX Capital. The buyer has already paid an initial consideration as part of the deal.

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ETX Capital is expected to begin liaising with former customers of Alpari UK to offer them to open trading accounts with the UK brokerage. At the client’s discretion, the outstanding funds which are due to them, can be transferred to their new trading account with ETX Capital.

The Joint Special Administrator of the Company and partner at KPMG, Richard Heis, commented in the announcement, “Following substantial initial interest in the Alpari UK client list, we are pleased to have now concluded a sale, as we continue to work to seek ways to maximise the level and speed of return to clients and creditors in accordance with our statutory duties.”

In what could potentially be a multimillion pound deal, ETX Capital has purchased over 160,000 accounts and their supporting documentation, allowing the broker to set up accounts instantly for all ex-Alpari UK clients.

There is a mechanism set up for clients to get their funds owed by Alpari UK and the FSCS transferred directly into their new ETX account. In addition, the buyer of the accounts has set up a help line for Alpari UK clients to assist them in getting their money back. The total amount of funds on balances of the bankrupt company exceed $100 million.

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ETX Capital has expanded its team, hiring 20 new staff to support the growth in London and in the firm’s technology centre in Hemel Hempstead with at least 5 of the new hires coming from Alpari UK.

The Chairman of ETX Capital’s board John Wilson, commented in the company’s announcement, “At ETX Capital we have had a very good first quarter despite the issues that brought down Alpari; following on from record revenue and profits in 2014, this deal will further accelerate our growth and increase momentum.”

According to estimates made by ETX Capital, the deal could increase the size and worldwide reach of the broker by up to 50%.

Back in 2014, ETX Capital concluded a similar deal with Shelbourne markets.

The CEO of ETX Capital, Andrew Edwards, commented in the announcement about the deal, “We are very excited about this deal as it complements two of our main strategic drives: the expansion of our MT4 offering and the continued expansion of our international customer base.”

“We know that the last few months have been difficult for these Alpari customers; our multi-platform multi language capabilities make us best placed to address those clients’ needs. Whilst the clients may pursue their funds themselves through the administration process, we hope they accept our offer of assistance in facilitating a smooth transition of their funds to ETX Capital,” he added.

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