The ongoing discussion on the future of Boston Technologies comes to a rest as the US-based technology provider for FX and CFD firms has announced an acquisition by Forexware. The news comes as no surprise, as Forex Magnates broke the story in May. The move comes on the back of ongoing changes in the FX broking sector after tough operating conditions have affected the bottom line of participants.
The new combined entity will be focused on the institutional FX sector, an extension of the offerings both firms provide. The firm reported that it will offer a number of value-add features for its clients, including deepened liquidity and an expanded risk management suite. In addition, users will benefit from enhanced access to more educational resources, technical expertise and a deeper customer service operation.
George Popescu, CEO of Boston Technologies, commented: “Our primary focus remains squarely on our customers. We want to be sure that our customers receive the ideal blend of liquidity and technology that will allow them to remain highly competitive in the marketplace. We expect the combined entity to continue to grow at an impressive rate, enjoying the consolidated expertise of both firms. The servers, products, feeds, prices and customer service teams will remain the same and clients can expect the same level of superior service they’ve grown accustomed to.”
Discussions between the two firms took place despite the CFH Group collaborating with shareholder, Kevin Millien. CFH Group was unavailable for comment. The multi-service provider purchased the shares held by Mr. Millien of BT, a total of 50%. Adding salt to the wounds was exclusive information Forex Magnates obtained yesterday, details of an injunction order against Boston Prime and Mr. Popescu in a Belize court. The case was filed by Mr. Millien.
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“Forexware has an outstanding risk management suite and order management system that allows for larger FX brokers and other FX institutions to manage risk. To better serve our customers, we plan to use the combined resources of Boston Technologies and Forexware to provide a better experience. All of these enrichments and enhancements will be passed on to our clients,” explained Emil Assentato, Chairman and CEO of Currency Mountain Holdings, LLC, the parent company of Forexware, in a statement.
The deal was completed on the 11th of July, according to Forexware.
The cooperation is expected to serve the needs of retail aggregators in a period where large investment banks have given firms the cold shoulder. The FX prime brokerage (FXPB) sector has witnessed a number of changes as the cost of credit raises the bar for firms to connect with a PB. Recently, Rabobank and Swedish SEB, both made aggressive changes in their FX prime operations.
The Prime of Prime (PoP) sector is an offshoot of the traditional prime brokerage offering, firms such as Boston Technologies or Forexware leverage off their PB relationships to brokerages in a bid to provide the equivalent service. Forex Magnates expects the PoP sector to further develop in light of the changes at tier-1 banks.