Amid strict regulations in the prop trading space, firms are turning to well-established multi-asset trading brands to ensure compliance. CVC Asia Fund IV has agreed to sell OANDA Global Corporation to FTMO Group. The deal is subject to regulatory approvals, and the financial terms were not disclosed.

Industry experts view this as a sign of broader developments ahead as the emerging prop trading space continues to evolve. OANDA, founded in 1996, provides a digital trading platform for retail and corporate clients. It offers multi-asset trading, currency data, and analytics. The company operates in major financial hubs, including New York, London, and Tokyo.

OANDA Transforms Under CVC, FTMO Acquisition

"The team has taken OANDA from a regional foreign exchange provider to a fully diversified offering whilst building upon its historic strengths in regulatory compliance and best-in-class customer support. We would like to thank the entire team at OANDA for their efforts,” Siddharth Patel, Managing Partner at CVC, said.

In 2018, CVC Partners Asia Fund acquired a 98.5% stake in OANDA for $160 million, valuing the broker at $175 million based on the previous year’s $35 million EBITA. Since then, OANDA has expanded under CVC's ownership, introducing new products, establishing a back-end office in Poland, and developing a mobile trading platform. The remaining 1.5% equity was classified as management profit interest.

OANDA Updates Prop Trading Program Conditions

In October of last year, Finance Magnates reported that OANDA, six months after launching its prop trading offering, had updated the conditions for its trading challenges to appeal to experienced traders, especially in response to recent developments in the prop firm sector.

The updated program now includes more flexible assessment criteria and higher profit-sharing opportunities. Traders who successfully complete a challenge can unlock an 80% profit share as signal providers, a significant increase from previous levels.

Forex industry expert Kathy Lien described the move as smart. "It's a smart way to get ahead of a lot of things that could be coming for the prop trading industry, most important of which could be a regulatory environment that is changing. Regulators all around the world are taking a closer look at the prop firms, and they are definitely going to be looking at more regulations and more rules in the coming months and maybe even years."

"And these new compliance rules could be coming soon. By acquiring Oanda, FTMO basically gains access to a team that knows how to navigate a lot of these challenges in regulation and getting licenses. It is like having a seasoned guide, and you know one of the trickiest markets in the world.

FTMO Welcomes OANDA's Management

Beyond regulatory considerations, FTMO could also gain from OANDA’s decades of expertise in risk management. "We are delighted to welcome OANDA’s existing management team, whose track record in complex, regulated markets, strong expertise in risk management , and customer-centric philosophy fully complements FTMO’s own vision and strategy," Otakar Šuffner, FTMO's co-founder and CEO, and Marek Vašíček, FTMO's co-founder and CTO, commented.

FTMO, based in the Czech Republic, provides educational and training services for traders. It plans to keep OANDA as a standalone business. They added: "We look forward to building together a unique, comprehensive trading powerhouse group of companies that has not existed in the market until now."

Nomura and Santander advised CVC, while Milbank (Hong Kong) LLP provided legal support. J.P. Morgan advised FTMO, with legal counsel from Latham & Watkins LLP.

FTMO Appoints New COO, CEO

Meanwhile, Riana Chaili has confirmed her appointment as Chief Operating Officer at FTMO's brokerage division, following the earlier appointment of Michael Kamerman as CEO.

Finance Magnates reported earlier that with recent key hires, FTMO seems set to launch its brokerage services as part of its long-term strategy. Despite this expansion, FTMO remains dominant in the prop trading sector, generating over $213 million in turnover in 2023, a 20% increase year-over-year.