Forex Consolidation Trend Continues with Two Acquisitions, Russian Parliament Setting Limits

Forex Magnates spotlights this week's news from around the world, from an unlikely American IPO to a harsh new legislation

The stories that made the most impact in the global forex industry this past week, judging by their popularity with our readers, involved the appointment of a new CEO for Saxo Bank Switzerland, the investment in the Tradimo trading school by the group behind the Tradable platform and FXPrimus’ move up the value chain.

Questionable Report from the Wall Street Journal

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IronFXAccording to a report from the Wall Street Journal (later picked up by various portals, blogs and company affiliates), sources close to IronFX have revealed a plan to go public on a US exchange with a valuation of $800 million.

Forex Magnates detailed key issues concerning the global broker’s structure that cast some doubts about its potential IPO success especially in the US. For one thing, IronFX has no US office, no US regulation, no known US shareholders or any type of affiliation to North America. The commenters on our report raised doubt about the story as well.

Russian Forex Regulation Law

russia flagThe latest version of the Russian forex regulation bill was passed in the Russian Duma this past week on its second reading officially making the bill into a law, pending final due diligence in a formal read in the Federal council. For the first time ever, the official business of forex dealers in Russia has been legally defined.

According to the law, the services provided by forex dealers may only be provided by companies which are not banks or typical brokerages dealing with securities. The regulatory environment is on the tough side with the leverage ratio set between 1:50 to 1:100. The Governor of the Central Bank, Elvira Nabiullina, has recently clarified that the bill has borrowed some provisions from US and Japanese regulatory environments.

Saxo Appoints New Swiss CEO and Jokes about Russian Default

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rp_saxo-bank-logo-1-300x224.jpgThe Swiss arm of one of the leading European brokers offering foreign exchange and CFD trading had announced on Monday that Antonio Ferrante will join the company as the new CEO of Saxo Bank (Schweiz) AG. Tobias Straessle will remain acting interim CEO until January 5, 2015, when Antonio Ferrante takes over the position.

On Thursday we reviewed the company’s notoriously famous annual, sometimes crazy-sounding, forecasts. Russia defaults again, Japanese inflation hits five percent, Draghi quits the ECB, China devalues the Yuan 20% and the UK housing market crashes – which one of these can really happen we leave up to you.

FXPrimus’ Owners Buy CMS Forex

primusLast Sunday, Forex Magnates exclusively reported that the group behind the retail broker FX Primus has executed the acquisition of Capital Market Services UK Ltd. (CMS Forex). The transaction has already received final approval from the United Kingdom Financial Conduct Authority (FCA) earlier this year.

The Ireland-based holding firm, Prime Mantle Corporation, hopes to leverage and expand CMS’ CapMar Financial offering of institutional liquidity and prime-of-prime services in the FX, CFD and Metals markets.

CFH Group Purchase 50% of Tradimo Interactive

CFH GroupOn Monday, CFH Group, whose businesses include CFH Clearing, CFH Systems and Tradable, had announced that it has purchased a 50% stake in Tradimo Interactive. Part of Etruvian Group, Tradimo is an online trading school which was founded by the team that started PokerStrategy.com.

According to CFH Group, since 2012, Tradimo has provided trader education to 1.6 million users with what it describes as “unique, easy and beginner friendly lessons and videos.” CFH Group will begin to offer marketing solutions within its suite of broker related products following the move.

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