London Capital Group, a listed provider of margin derivatives products, has made major changes to its forex business, as reported by Forex Magnates. The multi-asset firm is believed to have shut down its institutional FX segment as it diverts its attention to the popular MT4 trading platform. The firm’s main FX-focused website is now redirected to a portal that caters to MetaTrader 4 traders. The news comes as LCG assesses its core offerings for clients under the direction of its new executive management.
One of the UK’s major forex, CFD and financial spread betting providers, LCG continues to restructure its business. Following on from personnel changes in its institutional forex division, such as the departure of former Head of FX Gavin Foster, the London-based provider has closed its prime brokerage unit according to people close to the matter.
Forex Magnates reported last week that the firm was reviewing its business and further research shows that the main institutional FX website has been replaced by an alternative website that has no information about the firm’s institutional FX offering, namely its prime-of-prime product.
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A spokesperson for LCG commented to Forex Magnates in an emailed statement: “We are currently performing an ongoing review of our offering to ensure clients benefit from the very best service from the right platforms at LCG.”
LCG was a key player in the London prime market serving hedge funds, proprietary trading firms and retail aggregators. The firm would provide access to a range of ECNs including: Currenex, FXOne, Hotspot and several others. Under the restructuring, the firm is believed to have diverted its FIX Api business onto the MetaTrader 4 platform.
The prime-of-prime market acts as an intermediary to the FXPB providers. With the cost of credit and leverage under question by leading FX banks, the FXPB space continues to consolidate with fewer banks offering a service. Non-bank liquidity is the latest trend in the market as new entrants, such as hedge funds and proprietary trading firms, act as natural traders that can absorb order inflows.
The latest news comes as an opportunity for PoP providers as LCG’s institutional closure follows that of BT Prime.