News Nuggets | 11 September: New Spectrum Markets Member; AsiaNext's Singapore License

TradeZero USA Acquires Koonce Securities

TradeZero USA, a subsidiary of TradeZero Holding Corp., has completed its acquisition of Koonce Securities LLC. This acquisition enables Koonce Securities to provide clearing services for TradeZero's group of brokers, the company announced today (Monday).

Daniel Pipitone, the CEO of TradeZero Holding Group, said: "The acquisition of Koonce will eventually allow TradeZero broker-dealers to receive dedicated treatment and service from our in-house clearing team, resulting in a better client experience for TradeZero's clients."

Perfios Secures $200M from Kedaara Capital

An Indian fintech startup, Perfios has secured an investment of $229 million from Kedaara Capital. This funding includes both primary fundraising and secondary sale components, although the company has not disclosed its valuation.

Headquartered in Bengaluru, Perfios leverages data to assist banking and financial institutions in making informed decisions, including assessing creditworthiness and income analysis. According to the company's announcement, the funds raised will be directed towards expanding its presence in North America and Europe.

Gainn Fintech Unveils Financial Services Platform

The Mumbai-based Gainn Fintech has introduced a financial services platform to enhance users' trading services. The platform's solution provides traders with real-time market insights, comprehensive analysis, and a wider array of resources for traders.

According to the company's statement, the key features of Gainn Fintech Financial Services Platform include AI-powered insights for data-driven decisions, a diverse range of tradable assets for portfolio diversification, and enhanced cybersecurity measures.

Yeekatee Secures CHF 550K Funding

A Swiss fintech firm, Yeekatee has obtained CHF 550,000 in funding from Five T Fintech and existing investor, Ronald Strassler. This investment followed the recent unveiling of a mobile app, which allows users to monitor all their assets, by the company.

Alexander Christen, the CEO and Co-Founder of Five T Fintech, explained that Yeekatee's mission is to redefine wealth aggregation and social investing. He highlighted the platform's booking engine that provides investors with depth and accuracy of portfolio data.

CySEC Informs on Russian 'Forced Transfers'

The Cyprus Securities and Exchange Commission (CySEC) has issued a circular regarding new Russian Federation Federal Laws that affect the transfer of Russian securities. The laws allow for the transfer of securities from non-Russian custodians to Russian custodians under certain conditions.

CySEC has requested regulated entities to provide information on customers who have proceeded with these 'Forced Transfers.' The deadline for this information is 25 September 2023.

Spain's CNMV Issues New Warnings

The National Securities Market Commission (CNMV) in Spain has issued warnings against several entities for operating without proper authorization. These entities include Proinvest, NinjaTrader, Equitiz, and others.

According to the CNMV, these institutions are not registered and, therefore, are not authorized to provide investment services. The warning serves as a cautionary note to potential investors and market participants to steer clear of these entities.

Progmat Boosts Japan's Digital Asset Market

Major financial institutions in Japan, including Mitsubishi UFJ Trust and Banking Corporation and Mizuho Trust & Banking Co., Ltd., have allied themselves to establish Progmat, Inc.

This new company aims to develop a digital asset issuance and management platform. The Digital Asset Co-Creation Consortium (DCC), managed by Progmat, Inc., has 214 member companies. The alliance aims to improve market convenience and enhance the competitiveness of the digital asset market in Japan.

Charlie Walker Appointed LSE's Deputy CEO

The London Stock Exchange Group (LSEG) has announced the appointment of Charlie Walker as the deputy CEO of its main exchange. Walker will report to Julia Hoggett, the CEO of the London Stock Exchange plc.

The appointment comes amid ongoing reforms aimed at making the market more appealing to investors and companies looking to list.

UBS Cuts Asia Wealth Management Jobs

UBS Group is planning to cut jobs in its wealth management sector in Asia, following its acquisition of Credit Suisse. The cuts are a response to the reduced client activity and China's slowing economy.

The bank plans to eliminate several hundred roles, primarily those acquired through its absorption of Credit Suisse, in Hong Kong and Singapore. However, the majority of private bankers in Australia and India will be retained

Directa SIM Joins Spectrum Markets

Italian retail broker, Directa SIM has become the latest member of IG-owned Spectrum Markets, a pan-European trading venue for securitized derivatives. It will be a direct member of Spectrum Markets, meaning it can use proprietary technology to act as its own settlement agent.

Directa has over 61,000 active accounts with combined customer assets of about €3.5 billion.

“Spectrum’s philosophy has always been about finding a better way to do things for retail investors, and this is an ethos that we really share with Directa, so they are a very natural partner for us, and we’re delighted to have such a respected and pioneering retail broker joining the venue,” said Nicky Maan, the CEO at Spectrum Markets.

AsiaNext Gains Singapore License

AsiaNext, an institution-focused digital asset exchange, has received a Recognised Market Operator (RMO) license from the Monetary Authority of Singapore (MAS). The platform also holds an in-principle approval for a Capital Markets Services (CMS) license.

With the new license, AsiaNext can operate as an organized market for securities and collective investment schemes.

“Since our inception, the team has worked tirelessly to construct an institutional-grade exchange based on stringent compliance and risk management standards that govern our entire organization as well as the multi-asset classes that will be traded on our venue,” said Chong Kok Kee, the CEO at AsiaNext.

Malaysia’s SC Continues Crackdown

Malaysia’s Securities Commission (SC) has added two more potential clones of legitimate financial services platforms to its Investors Alert list. The names are United Global Malaysia and Bill Morrisons Sdn Bhd.

The fresh listing came days after the Southeast Asian regulator flagged five platforms for suspicious activities within its jurisdictions.

HK Revokes Axial Capital Management Limited’s Licence

The Securities and Futures Commission (SFC) has found Axial Capital Management Limited (Axial) in violation of repeated compliance violations and thus revoked its license. The regulator also suspended the license of Axial’s responsible officer (RO), Eugene Chung, for five years.

According to the SFC, the company did not maintain the mandatory required liquid capital of $100,000 for a consecutive period of 19 months, from 28 March 2019 to 16 October 2020. Although the company was aware of the lapse, it informed the regulator about it after 18 months.

“The SFC is of the view that Axial’s conduct was not only in breach of the SFO, the FRR, and the Code of Conduct, but also amounted to flouting the FRR regime. Under the circumstances, the conduct of Axial fell far short of the standards expected of licensed intermediaries,” the SFC’s announcement stated.

Goldman Sachs Joins Eurex

Goldman Sachs has become a new member of the lifted FX Futures business of Eurex, a European owned by the Deutsche Börse Group. Goldman Sachs has joined as a trading and clearing member and also a liquidity provider for off-book transactions.

“We are delighted to see Goldman Sachs offering their global client base access to our listed FX derivatives suite,” said Jens Quiram, the Global Head of FIC Derivatives & Repo Sales at Eurex. “Goldman Sachs’ engagement both as clearing member and liquidity provider will enable even more clients to benefit from listed FX liquidity at Eurex.”

Joseph Nehorai, the Global Co-Head of Futures at Goldman Sachs, said: “With block trades and EFPs, we can offer access to OTC liquidity while transacting in a listed instrument. Increasing funding and capital costs evolving in FX markets are leading to a growing appetite to move towards listed FX derivatives. This enables the buy-side community to enjoy the advantages of OTC trading and centrally cleared derivatives.”