FX Weekly Review: TikTok Forex / CFDs / Crypto Ban, $ 1 Billion LMAX Valuation, Plus500 Results

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It was one of the busiest weeks of the year for Forex industry news, with all of the key stories appearing first or exclusively here on FNG.

Why has TikTok added Forex, CFDs, and crypto trading to its banned list for branded content?

Who bought a 30% stake in institutional FX and crypto execution venue LMAX – at a valuation of $ 1 billion !?

How has Plus500 performed in Q2-2021, compared to previous quarters?

Who acquired the trading platform provider Tradesocio?

Why has Playtech canceled its shareholder vote, which is necessary to complete the agreed $ 101 million sale of its Financials division (Finalto, Markets.com)?

Which currency brokers got new licenses in UAE and South Africa?

These are just a few of the scenarios covered this week at FNG – and we haven’t even mentioned the senior executive moves at Capital Index, OANDA, Capital.com and ETX Capital yet. Here are some of the top forex industry news to appear over the past seven days on FNG:

TikTok prohibits Forex, CFDs, and crypto trading of branded content. Popular video-sharing and social media site TikTok has updated its authoring policies regarding branded content, which now prohibits TikTok creators from posting branded content on financial products and services. This definition includes (and appears to primarily target) currency trading, crypto trading, and CFD trading, as well as a longer list such as credit cards, buy now and later services, sureties. and debt consolidation services. The creators of TikTok can always post their own content to financial services, such as views on forex and crypto trading or specific stocks and indices. The ban only applies to branded content.

JC Flowers buys 30% of the capital of LMAX for a valuation of 1 billion dollars. The institutional crypto exchange and execution group LMAX has announced that it has signed a definitive agreement to sell a 30% stake in the company to JC Flowers & Co. LLC, a leading private investment firm dedicated to the global investment in the financial services sector, for a cash consideration of $ 300 million valuing the LMAX group at $ 1 billion. This is a secondary sale of shares by employees of the LMAX group, with the company receiving no money from the transaction. The transaction remains subject to regulatory approval. LMAX reported gross profit of $ 60.5 million and EBITDA of $ 39.2 million for the first six months of 2021, both figures having increased significantly from last year.

Plus500 Q2 revenue down 30% QoQ to $ 143 million, launches stock trading platform. Leading FX and CFD brokerage group Plus500 (LON: PLUS) released a semi-annual trading update, indicating that its business slowed significantly in Q2-2021 in terms of revenue and acquisitions of new customers in what the company has called a stable market environment. Plus500 reported that the Group’s revenue in the first half of 2021 was $ 346.2 million (H1 2020: $ 564.2 million, H1 2019: $ 148.0 million), of which $ 143.0 million dollars in the second quarter of 2021 (Q2 2020: $ 247.6 million, Q2 2019: $ 94.1 million). The company added that customer revenue revenue from customer spreads and overnight charges reached $ 379.2 million in the first half of 2021 (H1 2020: $ 556.9 million, H1 2019: 175.0 million. dollars), of which $ 157.7 million in the second quarter of 2021 m).

Bambu acquires Tradesocio, a UAE / Singapore trading platform provider. Singapore-based robo advisor solutions provider Bambu has announced the acquisition of Tradesocio, a 65-employee WealthTech company specializing in investment management and trading technologies with offices in Singapore, India and Dubai. The parties said the acquisition significantly strengthens the competitiveness of the combined companies globally. Tradesocio is led by Wael Salem, CEO of United Arab Emirates, a former senior executive of retail forex brokers FXCC, FXCBS and One Financial Markets. Its clients and partners include FXCM, Saxo Bank, MetaQuotes and Interactive Brokers.

Playtech cancels shareholder vote on sale of Finalto / Markets.com. Well, it was quick. Less than a week after proposing to postpone (by two weeks) the shareholder vote on the planned $ 101 million sale of its Financials division to investor group Zvika Barinboims, online gaming technology provider Playtech ( LON: PTEC) has now announced that it is canceling that vote altogether. Instead, Playtech has indicated that it will issue a new supplementary circular to shareholders, which will include an update to shareholders on the process to sell Finalto, including a review of the indicative, non-binding (and competitor / superior) made for the Financial Division of TT Bond Partners Gopher Investments, led by Hong Kong-based banker Jonathan Bond.

The top movements by forex industry executives reported to FNG this week include:

Aline Uncertain

Exclusive: Matthew Wright is stepping down as CEO of Capital Index.

Exclusive: Aline Ungewiss, ETX Marketing Manager, switches to MillTechFX.

Chantelle Johnson is leaving the position of CMO at OANDA.

Saxo Markets Appoints Manish Prasad Director of Asset Management for APAC.

Exclusive: Tarik Chebib, Head of Pepperstone ME, joins Capital.com.

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