Exclusive: Pepperstone Shuts Down Japan Services as IPO Grows Imminent
by
George Tchetvertakov
One of Australia’s largest FX and CFD brokers is pulling out of Japan and re-focusing on regions where it is fully regulated. With an IPO imminent the broker is looking to Europe and New Zealand for international expansion.
One of Australia’s fastest growing and largest retail FX and CFD brokers, Pepperstone Financial, has just announced the firm will no longer accept new Japan-based clients as of today.
The broker announced its intention via an email sent to all of their Japan-based clients earlier today. In the email, the company writes: “Pepperstone does not currently hold a license issued by the JFSA and we have therefore decided that we can no longer service Japanese residents until such time as we hold the appropriate license issued by the JFSA."
As of today, Peppersone’s Japanese language website will also be removed. Existing clients have been set a date of 31st of December, 2014 to unwind and close all open positions.
Onwards and Upwards
Turning over approximately $70bn per month in FX transactions and ranking in the Top 10 largest retail brokers globally, the firm is looking to take all the appropriate steps in order to list publicly later this year.
In an exclusive interview with Forex Magnates, Pepperstone’s CEO, Owen Kerr explained, “We deem it not appropriate to provide services to Japanese clients without holding a financial services license in Japan." Adding, “This move is part of a broader plan that we have undertaken to ensure compliance in material jurisdictions in which we operate. It is essential for any multi-national broker to respect local regulatory rules."
In parallel, Pepperstone has strategically acquired a financial services license from New Zealand’s Financial Markets Authority (FMA) allowing the firm to offer trading services in New Zealand with a fully regulated status. The license was officially approved earlier this week according to Mr. Kerr.
An IPO has been rumoured to be the firm's future direction for several months, amid a broader industry trend. The firm's operational changes in recent weeks and months could be an indication that with Pepperstone standing on the precipice of becoming a public company, it wants to optimise all aspects of its business in order to present the best possible offering to investors in the forthcoming IPO.
Pepperstone has appointed UBS and Citibank as co-lead managers and underwriters for the IPO to be made public later this year. Mr. Kerr also revealed that given Pepperstone’s strong performance and growth over the past few years it has allowed the broker to “actively consider acquisitions in Europe to facilitate growth in the region." The broker made a successful foray into the Chinese market in 2013 and currently derives approximately 15% of its total revenue from China.
Forex Magnates will bring readers exclusive reports of Pepperstone's IPO expected to be finalised before the end of 2014.
Not the First Ones
Pepperstone’s decision to exit the Japanese market follows on the heels of its close competitors taking similar steps. Only this week, FXCM Japan announced plans to cease offering services to Japanese retail clients in part due to regulatory changes and Leverage restrictions imposed by the JFSA. Earlier this year, the Japanese FSA (JFSA) issued a warning to Australian brokers and was reportedly liaising with ASIC on a senior level regarding prohibiting Australian broking firms from operating in Japan without a local license.
Pepperstone admitted in an official statement, “We may look to obtain a license in Japan in the future, however, in the meantime we are focused on being fully compliant with the Japanese regulatory system.”
One of Australia’s fastest growing and largest retail FX and CFD brokers, Pepperstone Financial, has just announced the firm will no longer accept new Japan-based clients as of today.
The broker announced its intention via an email sent to all of their Japan-based clients earlier today. In the email, the company writes: “Pepperstone does not currently hold a license issued by the JFSA and we have therefore decided that we can no longer service Japanese residents until such time as we hold the appropriate license issued by the JFSA."
As of today, Peppersone’s Japanese language website will also be removed. Existing clients have been set a date of 31st of December, 2014 to unwind and close all open positions.
Onwards and Upwards
Turning over approximately $70bn per month in FX transactions and ranking in the Top 10 largest retail brokers globally, the firm is looking to take all the appropriate steps in order to list publicly later this year.
In an exclusive interview with Forex Magnates, Pepperstone’s CEO, Owen Kerr explained, “We deem it not appropriate to provide services to Japanese clients without holding a financial services license in Japan." Adding, “This move is part of a broader plan that we have undertaken to ensure compliance in material jurisdictions in which we operate. It is essential for any multi-national broker to respect local regulatory rules."
In parallel, Pepperstone has strategically acquired a financial services license from New Zealand’s Financial Markets Authority (FMA) allowing the firm to offer trading services in New Zealand with a fully regulated status. The license was officially approved earlier this week according to Mr. Kerr.
An IPO has been rumoured to be the firm's future direction for several months, amid a broader industry trend. The firm's operational changes in recent weeks and months could be an indication that with Pepperstone standing on the precipice of becoming a public company, it wants to optimise all aspects of its business in order to present the best possible offering to investors in the forthcoming IPO.
Pepperstone has appointed UBS and Citibank as co-lead managers and underwriters for the IPO to be made public later this year. Mr. Kerr also revealed that given Pepperstone’s strong performance and growth over the past few years it has allowed the broker to “actively consider acquisitions in Europe to facilitate growth in the region." The broker made a successful foray into the Chinese market in 2013 and currently derives approximately 15% of its total revenue from China.
Forex Magnates will bring readers exclusive reports of Pepperstone's IPO expected to be finalised before the end of 2014.
Not the First Ones
Pepperstone’s decision to exit the Japanese market follows on the heels of its close competitors taking similar steps. Only this week, FXCM Japan announced plans to cease offering services to Japanese retail clients in part due to regulatory changes and Leverage restrictions imposed by the JFSA. Earlier this year, the Japanese FSA (JFSA) issued a warning to Australian brokers and was reportedly liaising with ASIC on a senior level regarding prohibiting Australian broking firms from operating in Japan without a local license.
Pepperstone admitted in an official statement, “We may look to obtain a license in Japan in the future, however, in the meantime we are focused on being fully compliant with the Japanese regulatory system.”
Interactive Brokers Expands Offerings with Daily Options on French Stocks
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
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Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
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