London Capital Group (LCG) has notified investors, that its white label partner, Tradefair Spreads, was terminating its agreement with the broker, taking effect at the end of December 12, 2013. The partnership began in 2007, with UK gaming giant, Betfair, launching Tradefair as its spread betting subsidiary using technology and liquidity from LCG. According to LCG, profits from clients introduced by Tradefair accounted for £0.6 million (5.1%) of the broker’s £11.7 million in total gross profits reported for the first six months of the year.
With the move away from London Capital Group, Tradefair will be working exclusively with GFT Markets, where it operates a white label of its DealBook 360 trading platform. The white label is currently being marketed as Tradefair Plus, with existing ‘classic’ account holders using LCG technology, being offered monetary incentives to switch to the GFT powered accounts.
How to Prepare for CySEC’s New Tiered LeverageGo to article >>
The timing of the news is interesting, as it coincides with GAIN Capital currently in the process of finalizing its deal to purchase GFT. During the deal’s presentation, it was stated that GAIN would continue to support GFT technology following the end of the merger. As such, Tradefair’s partnership appears to validate that the GFT brand and platform will continue to operate once entering within the umbrella of GAIN Capital.
On the news, shares of LCG (LCG.L) have fallen 5.5% to 33.75p, while shares of Betfair (BET.L) are higher by nearly 3.0% to 1,044p.