AxiCorp to Acquire UK Tech Company Star Financial Systems
- The deal announced today was reached after 12 months of talk.
AxiCorp, an Australian-owned foreign exchange (forex) and contracts for difference (CFD) trading provider, announced this Thursday that after more than 12 months of talks, it would acquire Star Financial Systems.
Star Financial Systems is a trading technology company headquartered in the United Kingdom. Under the agreement, which is a cash-based deal, the trading provider will acquire all the technology, staff, operations, and licenses of Star. The size of the deal and the expected closing date were not disclosed.
However, according to the company’s statement seen by Finance Magnates, the Chief Executive Offer of AxiCorp, Rajesh Yohannan, highlighted that the transaction isn’t necessarily going to be a radical change for the company.
“We view this as a partnership, not an acquisition,” Yohannan said in the statement. “Star has built an enviable reputation and loyal clientele by doing things its own way, under its own direction, and we’re not concerned with trying to change that. What AxiCorp can and will do is add greater Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term and Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term to the already excellent trading platform APIs and back-office infrastructure.”
AxiCorp is in acquisition mode
The acquisition of Star is the latest in a range for the Australian-based company, having taken over One Financial Markets (OFM), a broker who is popular in the Middle East. Following this, in an interview with the company’s CEO, Yohannan told Finance Magnates that it was in acquisition mode.
“Most obviously this approach greatly strengthens our end-to-end service and makes AxiCorp a more compelling choice for traders – for example, the addition of Star immediately gives us greater flexibility with what we can offer IB partners and affiliates – but it also encourages future business investment.
“With each successful acquisition, we’re able to prove to potential partners that we have a clear strategy in place, are focused on growth and have the ability to integrate.”
Appeal of ASIC ASF license suspension
Amidst its stream of acquisitions, AxiCorp has been having trouble with financial regulators. As Finance Magnates reported, the trading provider appealed the ASIC suspension of its Australian Financial Services (AFS) license.
In a statement provided to Finance Magnates, AxiCorp said: “We strongly believe that the issues raised by ASIC are generally historical, in many cases self-reported and do not deserve a suspension, which is why we’ve appealed the decision.
“AxiCorp has made significant investment in its Australian compliance function and practices to ensure it is appropriate to meet our obligations with reference to the size and complexity of the business."
“In fact, we’ve recently commissioned an independent review by a highly experienced and qualified risk management and regulatory compliance expert in relation to ASIC’s concerns. The report (shared with ASIC) made a number of positive observations about AxiCorp’s compliance operations, highlighted some areas that required further work. AxiCorp has completed all of the work required and has taken steps to address the opportunities for further improvement identified by the expert."
AxiCorp, an Australian-owned foreign exchange (forex) and contracts for difference (CFD) trading provider, announced this Thursday that after more than 12 months of talks, it would acquire Star Financial Systems.
Star Financial Systems is a trading technology company headquartered in the United Kingdom. Under the agreement, which is a cash-based deal, the trading provider will acquire all the technology, staff, operations, and licenses of Star. The size of the deal and the expected closing date were not disclosed.
However, according to the company’s statement seen by Finance Magnates, the Chief Executive Offer of AxiCorp, Rajesh Yohannan, highlighted that the transaction isn’t necessarily going to be a radical change for the company.
“We view this as a partnership, not an acquisition,” Yohannan said in the statement. “Star has built an enviable reputation and loyal clientele by doing things its own way, under its own direction, and we’re not concerned with trying to change that. What AxiCorp can and will do is add greater Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term and Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term to the already excellent trading platform APIs and back-office infrastructure.”
AxiCorp is in acquisition mode
The acquisition of Star is the latest in a range for the Australian-based company, having taken over One Financial Markets (OFM), a broker who is popular in the Middle East. Following this, in an interview with the company’s CEO, Yohannan told Finance Magnates that it was in acquisition mode.
“Most obviously this approach greatly strengthens our end-to-end service and makes AxiCorp a more compelling choice for traders – for example, the addition of Star immediately gives us greater flexibility with what we can offer IB partners and affiliates – but it also encourages future business investment.
“With each successful acquisition, we’re able to prove to potential partners that we have a clear strategy in place, are focused on growth and have the ability to integrate.”
Appeal of ASIC ASF license suspension
Amidst its stream of acquisitions, AxiCorp has been having trouble with financial regulators. As Finance Magnates reported, the trading provider appealed the ASIC suspension of its Australian Financial Services (AFS) license.
In a statement provided to Finance Magnates, AxiCorp said: “We strongly believe that the issues raised by ASIC are generally historical, in many cases self-reported and do not deserve a suspension, which is why we’ve appealed the decision.
“AxiCorp has made significant investment in its Australian compliance function and practices to ensure it is appropriate to meet our obligations with reference to the size and complexity of the business."
“In fact, we’ve recently commissioned an independent review by a highly experienced and qualified risk management and regulatory compliance expert in relation to ASIC’s concerns. The report (shared with ASIC) made a number of positive observations about AxiCorp’s compliance operations, highlighted some areas that required further work. AxiCorp has completed all of the work required and has taken steps to address the opportunities for further improvement identified by the expert."