Growing Regulatory Pressure and FXCM's Facelift - Best of the Week
by
Dan Magen
Playtech and FXCM, alongside the Israeli and Dutch regulators, all feature in last week's top stories.
During the passing week, the top news in the global Online Trading industry included the rebranding of FXCM, regulators in Israel and the Netherlands taking action against binary options, Forex and CFDs, Playtech revealing its annual results and the FCA hinting that it may regulate binary options within a year.
Dutch regulator prepares binary options, FX and CFDs advertising ban
On Monday, we reported that the AFM (Financial Markets Authority) is preparing to limit the advertisement of certain financial products that the country’s government deem too risky. The regulator published a communique which effectively starts a period of consultation with the industry and clients of the financial services.
High-leverage products will be limited across the board with binary options, forex and CFDs with over 1:10 leverage being forbidden. The country’s regulator is also enforcing a ban on warrants, cocos (Contingent Convertible bonds), futures and some turbocharged products with leverage higher than 1:10, which have been on the offer by commercial banks.
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FXCM on the move
Tuesday - FXCM, once the biggest retail forex broker in the US but now expelled from that market, renamed itself and introduced changes to its senior management . The forex, CFDs and spread betting provider promoted the European subsidiary’s CEO, Brendan Callan, to Interim CEO. He has been with the firm since 2001 and has successfully been managing the company’s London-based branch since 2010. The embattled former CEO, Drew Niv, will retain an advisory role for the public company, which is to be renamed ‘Global Brokerage Inc’.
Playtech’s bullish 2016
On Thursday we learned that the gaming and online trading giant Playtech has benefited from CFH acquisition. Playtech’s 2016 annual results released last week showed substantial growth. The company’s second half was boosted by the acquisition of CFH for $120 million, which concluded on the 30th of November and added a total of €1.8 million to the company’s revenues.
For the full year 2016, revenues of the financials division increased by over 9 percent to €65.6 million. The company’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totalled €15.4 million, which is lower than 2015’s €15.9 million by 3 percent. The company has attributed the underperformance in its bottom line to an overall decline in volatility.
Israel to ban marketing binary option abroad, limit FX market
On Thursday we exclusively reported on the dramatic new Israeli law that targets the marketing of binary options abroad and unregulated forex brokers operating in the country. According to the new law, the draft of which was obtained by Finance Magnates hours before its official release, the ISA intends to ban the marketing of binary options by Israeli companies abroad, almost one year after it banned the targeting of Israeli citizens last March.
In addition, foreign exchange brokers with an Israeli license will not be allowed to offer FX or onboard clients of foreign countries if they don’t hold a license in those countries. The penalties for violators of the law include jail time of up to two years.
According to new data released by the regulator, binary options made up 17 percent of the 106,800 enquiries to the FCA’s consumer contact centre between December 2015 through November 2016. The watchdog attributes the increasing popularity of binary options to the current low interest rate environment.
However, the FCA added that it has concerns that UK consumers are being increasingly targeted by fraudsters who offer opportunities to invest in binary options. Many such illegitimate binary options firms do not appear to be regulated by any agency, either in the UK or abroad.
During the passing week, the top news in the global Online Trading industry included the rebranding of FXCM, regulators in Israel and the Netherlands taking action against binary options, Forex and CFDs, Playtech revealing its annual results and the FCA hinting that it may regulate binary options within a year.
Dutch regulator prepares binary options, FX and CFDs advertising ban
On Monday, we reported that the AFM (Financial Markets Authority) is preparing to limit the advertisement of certain financial products that the country’s government deem too risky. The regulator published a communique which effectively starts a period of consultation with the industry and clients of the financial services.
High-leverage products will be limited across the board with binary options, forex and CFDs with over 1:10 leverage being forbidden. The country’s regulator is also enforcing a ban on warrants, cocos (Contingent Convertible bonds), futures and some turbocharged products with leverage higher than 1:10, which have been on the offer by commercial banks.
[gptAdvertisement]
FXCM on the move
Tuesday - FXCM, once the biggest retail forex broker in the US but now expelled from that market, renamed itself and introduced changes to its senior management . The forex, CFDs and spread betting provider promoted the European subsidiary’s CEO, Brendan Callan, to Interim CEO. He has been with the firm since 2001 and has successfully been managing the company’s London-based branch since 2010. The embattled former CEO, Drew Niv, will retain an advisory role for the public company, which is to be renamed ‘Global Brokerage Inc’.
Playtech’s bullish 2016
On Thursday we learned that the gaming and online trading giant Playtech has benefited from CFH acquisition. Playtech’s 2016 annual results released last week showed substantial growth. The company’s second half was boosted by the acquisition of CFH for $120 million, which concluded on the 30th of November and added a total of €1.8 million to the company’s revenues.
For the full year 2016, revenues of the financials division increased by over 9 percent to €65.6 million. The company’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totalled €15.4 million, which is lower than 2015’s €15.9 million by 3 percent. The company has attributed the underperformance in its bottom line to an overall decline in volatility.
Israel to ban marketing binary option abroad, limit FX market
On Thursday we exclusively reported on the dramatic new Israeli law that targets the marketing of binary options abroad and unregulated forex brokers operating in the country. According to the new law, the draft of which was obtained by Finance Magnates hours before its official release, the ISA intends to ban the marketing of binary options by Israeli companies abroad, almost one year after it banned the targeting of Israeli citizens last March.
In addition, foreign exchange brokers with an Israeli license will not be allowed to offer FX or onboard clients of foreign countries if they don’t hold a license in those countries. The penalties for violators of the law include jail time of up to two years.
According to new data released by the regulator, binary options made up 17 percent of the 106,800 enquiries to the FCA’s consumer contact centre between December 2015 through November 2016. The watchdog attributes the increasing popularity of binary options to the current low interest rate environment.
However, the FCA added that it has concerns that UK consumers are being increasingly targeted by fraudsters who offer opportunities to invest in binary options. Many such illegitimate binary options firms do not appear to be regulated by any agency, either in the UK or abroad.
Cheetah Fund Investors Lose $9 Million in Alleged Fraudulent Scheme
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
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
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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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
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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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
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
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
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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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
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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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
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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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
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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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.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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