Trading volumes are on the decline in the global financial trading arena and Abu Dhabi headquartered broker-dealer, ADS Securities(ADS), has rolled out a new business development approach in order to refine and improve its product and service offering.
The broker, who is regulated and authorised by the central bank of UAE, offers retail and institutional investors FX & CFD products. The firm’s primary office is in Abu Dhabi, however, since its international offices have started to gain traction the firm believes a reformed strategy is best suited to its growth.
A company spokesperson commented to Forex Magnates in an emailed statement: “We have looked in detail at our structure and made some changes which are designed to improve the way that we deliver services to our clients.”
ADS launched its first international office in 2013 in Hong Kong, the SFC regulated office focuses on developing ADS in the flamboyant China and Far East market. ADS’s Hong Kong unit has a number of staff members covering both retail and institutional sales, the office is headed by Desmond Yeo. ADS’s spokesperson added: “The office is also developing a retail business for the Hong Kong market.”
In addition, ADS cooperates with UK regulated Pioneer Trade, an introducer to the firm. ADS Holdings, the parent company behind ADS Securities, acquired Pioneer and provides ADS with accessibility to the UK and European markets. A growth area for the company, the spokesperson added: “In the UK ADS Securities’ parent company has acquired an FCA regulated company, Pioneer Trader Limited, which acts as an IB to ADS Securities selling our products into the European market. This is seen as an area of business which will expand quickly over the next 12 months.”
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The revived approach comes with the announcement that Marc Aspinall, the firm’s former global head of sales, has left the organisation. Mr. Aspinall joined ADS from CMC Markets where he was Group Director Partners Distribution. Forex Magnates first reported the news of Mr. Aspinall’s departure on the 10th of June.
ADS confirmed the news with an exclusive statement to Forex Magnates: “We can confirm that, Marc Aspinall, Head of Global Sales has left the company. Marc has made a considerable contribution to ADS Securities over the last two years. He was responsible for structuring the sales team and opening up a number of new business areas, and the management wishes him well in the future.”
The tough operating environment, plagued by limited volatility and low daily trading ranges in major financial instruments has put pressure on a number of leading brokerage firms with changes in personnel and product coverage, thus resulting in a defensive strategy.
Closer to Home
The firm’s internationalisation strategy is well on course, however domestically ADS continues to grow and develop. The broker, one of the largest in the region, has been cooperating with government authorities to support Abu Dhabi to position itself as a regional hub. The Abu Dhabi Global Market, a new financial free zone, is expected to go live in the next few months. Dubai has been the talk of the town as the non-0il producing nation which created a flare by becoming a hi-tech international city, with sound infrastructure and rulings in place. The DFSA is a spitting image of the UK’s financial watchdog, the FSA (now FCA).
Dubai’s FX & CFD market is significant with a large number of international brokers having their regional offices situated there. City Index was the latest firm to receive a central bank license.
The wealthy ‘Sheikhs’ (royalty in the Middle East) of the GCC are believed to be very attracted to the exciting world of margin trading, ADS and its $400 million initial capital injection is thought to have its roots and connections with some of the leading rulers. The trend continues with the launch of Fortress Prime, a UAE central bank regulated prime brokerage. Previously, One Financial Markets also had some involvement from one of the ruling families of the UAE.