Multiple independent sources have confirmed to Finance Magnates’ reporters that Alpari’s Dubai unit is likely to strike a partnership deal with Australian company AxiCorp, which is the parent company of AxiTrader.
The news comes about six months after the bankruptcy of Alpari U.K, whose assets and senior management have already been absorbed by the industry. While the Middle Eastern branch is a separate legal entity with a local license and team, Alpari Dubai’s clients have been affected from a technological perspective.
Customers of Alpari Middle East lost access to the MT5 platform of the firm in the aftermath of the Swiss National Bank event which prompted the shutdown of Alpari UK. Amongst the most valuable assets the Middle Eastern branch of Alpari possesses is the license from the Securities & Commodities Authority in the UAE.
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According to information obtained by Finance Magnates, there has been no definitive agreement between the companies as yet and any deal pends the approval of the local regulator. Sources with knowledge of the local market claim that a partnership with AxiCorp would most likely encompass the client assets of Alpari Dubai and its regulatory permit.
The operations of Alpari Dubai in the region have been substantial, however different sources claim that most of the company’s staff has already been hired by other firms operating in the Middle East.
The maintenance of an office in Dubai and the expenses associated with maintaining operations would be a substantial additional cost for AxiCorp, therefore the Australian firm is unlikely to be interested in committing funds for those operations.