News Nuggets | 24 August: Equiti Enters Qatar; Swiss Finance Corp Adds LumeFX

FCA Warns against FXPro Clone

The Financial Conduct Authority (FCA) has warned against a clone firm known as FX PRO AI. The firm is suspected of providing financial services or products in the UK without proper authorization.

The FCA has urged the public to avoid dealing with this firm and to be cautious of potential scams. The firm's contact details, including its address in London and email addresses, may be incorrect or subject to change, further raising suspicions.

Deutsche Borse’s SimCorp Takeover Gains Approval

Deutsche Borse AG has obtained its final regulatory clearance for the acquisition of SimCorp, a Danish company. The feedback issued by the European Commission on August 23, 2023, marked an important milestone in the transaction, the company announced.

The cash offer, which is set to conclude on September 19, 2023, at 25:59 (CEST), necessitates a minimum acceptance threshold of more than 50% of SimCorp shares. The anticipated settlement of the acquisition is expected to be completed on September 29, 2023.

Citi Invests in Peru’s Rextie for FTX Services

Citi has invested in Rextie, Peru's fintech focusing on FX services. According to the company's statement, this investment enhances Rextie's growth prospects and elevates its service offerings. Notably, this alliance sets a precedence as Latin America's first fintech firm to receive backing from a major global bank.

Mateu Batle, the CEO and Co-Founder of Rextie, remarked: "Going forward, Rextie will focus its efforts on attracting more small and medium-sized businesses, including customers involved in imports and exports activities."

Deutsche Bank Names Stephen Fisher as Global Head of Political Affairs

Deutsche Bank has selected Stephen Fisher as the new Global Head of Political Affairs, starting from October 1. In a statement, the bank praised Fisher as a well-connected expert in both political and financial domains. He is expected to engage policymakers and navigate the regulatory landscape.

He will reportedly be based in Brussels and London, reporting to Ben Alka, the Global Head of Corporate Affairs and Strategy. He has been associated with institutions such as the Dutch Banking Association, the European Banking Federation, and the UK's Financial Supervisory Authority.

Nvidia Shares Surge as Q2 Revenue Exceeds Expectations

The leading computer chip manufacturer, Nvidia, witnessed a surge of nearly 10% in after-hours trading, driven by the company's impressive financial performance in the second quarter. The report outperformed Wall Street's projections by more than USD $2 billion.

The company reported a remarkable USD $13.5 billion in revenue for the quarter, representing an increase of 88% from the previous quarter. The company projected a continued revenue surge, with expectations of reaching USD $16 billion in the third quarter.

eToro’s USD/TRY Overnight Fees Adjustment

eToro has adjusted its overnight fees on open USD/TRY positions, effective Thursday, 24 August. This change is in response to the substantial increase in the volatility of the Turkish lira (TRY), which has led to significant fluctuations in the USD/TRY exchange rate and impacted financing costs associated with holding open positions overnight.

SEC Adopts Amendments to Exemption Rules

The Securities and Exchange Commission (SEC) has adopted rule amendments that narrow the exemption from Section 15(b)(8) of the Securities Exchange Act of 1934. This section requires any broker or dealer registered with the Commission to become a member of a national securities association unless they solely affect transactions on an exchange they are a member of. The Financial Industry Regulatory Authority Inc. (FINRA) is the only registered national securities association.

The SEC's Chairman, Gary Gensler stated that the amendments update and narrow the circumstances in which broker-dealers do not need to register with a national securities association.

Binance Introduces New Order Types

Binance has introduced Trailing Stop and OCO (One Cancels the Other) orders on the latest version of the Binance.US mobile app. Previously available only to API traders, these order types are now also available on the web interface.

A Trailing Stop Order allows traders to lock in potential earnings while keeping positions open to greater upside opportunity, as it automatically adjusts to the current price of a cryptocurrency. The OCO Order allows traders to place two orders simultaneously, with one being automatically canceled if the other is executed.

Gen Z in South Korea Prefers Altcoins to BTC and ETH

A recent report from a local South Korean publication has found that 20% of Gen Z investors in the country prefer investing in Ripple's XRP over Bitcoin (BTC) and Ether (ETH). The study analyzed the crypto exchange, Bithumb's investment data from the year's first half, focusing on investment propensity by age.

Gen Z investors also showed a higher proportion of investments in altcoins, classified as both ‘long-term’ and ‘stable’ investments in the study, than in BTC and ETH.

Swiss Finance Corporation Adds Lucera's LumeFX Platform

Swiss Finance Corporation has partnered with Lucera, adding its trading platform, LumeFX, to the offerings of its institutional clients. The trading platform ensures low-latency and high-performance trading operations.

"As a multi-asset financial services provider operating 24 hours a day, our customers demand the highest standards of pricing, liquidity, and reliability. Lucera has an excellent reputation, and we are confident that this partnership will complement our ambitious growth plans in the years ahead," said Ben Robson, the Head of EFX at Swiss Finance Corporation.

Peter Durkan, the CEO of Lucera Financial Infrastructures, added: "Our goal is to provide our clients with top-tier solutions, empowering them to efficiently scale their business in an increasingly electronic and competitive industry. We're excited to be part of this journey with the team at Swiss Finance and look forward to working together as they expand."

Equiti Enters Qatar with Local Partnership

Equiti Group has expanded its reach in the Middle East by signing a Memorandum of Understanding (MoU) with Qatari holding company MK Enterprise. Though the scope of the partnership remains undisclosed, it will allow the broker to expand into the country.

"Our expansion into Qatar brims with potential, as this dynamic market seamlessly aligns with our trajectory for growth," stated Mohammed Alahmad Ketmawi, the Co-Founder and Chief Managing Director of Equiti Group. "Qatar's strategic importance cannot be overstated."

Headquartered in London, Equiti operates from several global offices. It offers its services under seven regulatory licenses.

Morgan Stanley Fined £5.4 Million

Ofgem, the British regulatory body overseeing electricity and downstream natural gas markets, has imposed a monetary penalty of £5.41 million on Morgan Stanley & Co. International plc (MSIP) for not recording and retaining electronic communications between January 2018 and March 2020. As Morgan Stanley settled, it received a 30 percent discount on the original fine.

It is the first time the authorities in Great Britain have imposed a penalty for lapses in requirements around recording and retaining electronic communications relating to trading wholesale energy products.

"This fine sends a strong message to market participants that they must comply with all REMIT rules or face enforcement action," said Cathryn Scott, the Regulatory Director of Enforcement and Emerging Issues at Ofgem.

SEC Charges Former Corrections Officer for Crypto Fraud

The Securities and Exchange Commission (SEC) has charged a former lieutenant at the New Jersey Department of Corrections, John A. DeSalvo, for a crypto scam that targeted police officers and first responders.

DeSalvo allegedly raised $623,388 from 222 investors by selling Blazar tokens from November 2021 to May 2022. He claimed Blazar would "replace traditional state pension systems" for police, firefighters, and paramedics, promising lucrative returns.

"Blazar Token is the first token or coin that is able to be purchased through payroll deduction every week. It will be taken out of one's weekly earnings pretax similar to payment into a pension, 401k, IRA, or any other retirement savings plans," DeSalvo allegedly told investors.

Options Technology Hires New SVP of Sales Engineering

Options Technology, a provider of cloud-based managed services, market data, and IT infrastructure solutions, has recruited Scott Feagans as its Senior Vice President of Sales Engineering.

Feagans previously held executive roles at TNS and ICE in his 20 years of industry experience. He also sold his firm, NetXpress to TNS in 2019.

"I am confident that my straightforward, people-focused approach, coupled with a drive for innovation and a genuine passion for the capital markets, will play a key role in our success," Feagans said.