This past week has seen significant developments within the Forex (FX) and Contracts for Difference (CFD) sectors. A notable shift occurred with the acquisition of Saxo Bank, a well-established broker, by an unexpected buyer from outside the traditional financial landscape. Additionally, Panda Trading Systems, a technology provider for brokers, is now facing a court-ordered forced sale to third-party investors.
The acquisition of Saxo Bank was valued at approximately €1.609 billion (around $1.74 billion), marking a substantial drop from its attempted Initial Public Offering (IPO) valuation of €2 billion in 2022. Safra Group has taken the reins, acquiring a controlling share from both Geely Group and Mandatum. This transaction is expected to give Safra approximately 70% ownership of Saxo Bank.
In another significant development, Panda Trading Systems is undergoing a tumultuous judicial process that is compelling the company to be sold. Founded in 2007, the company has been jointly owned by its founders. The reasons behind the court’s decision to enforce a sale remain unclear, but the implications are substantial for the future of the company and its operations.
On the cryptocurrency front, former CEO of NAGA Group, Ben Bilski, has re-emerged to announce a new venture focused on crypto trading. After a hiatus of nearly a year, Bilski described his upcoming initiative as “game-changing,” hinting at a new approach to cryptocurrency trading. The specifics of this venture have yet to be revealed, but it has generated considerable interest.
In regulatory actions, BUX, a neobroker based in the Netherlands, has faced a hefty fine of €1.6 million levied by the Netherlands Authority for the Financial Markets (AFM). This penalty stems from violations related to the inducements ban, indicating that BUX’s practices regarding customer referrals did not comply with legal standards.
Also noteworthy is news regarding Prospero Markets, a broker that has recently gone bankrupt. Reports indicate that client reimbursements will be significantly delayed, potentially not occurring until June 2025. This delay is a concerning and frustrating development for clients impacted by the firm’s collapse.
The FX industry has also witnessed several executive changes. Ben Bittan has been appointed as Vice President of Marketing at Leverate. Richard Balarkas has stepped down from his role as Chairman at Saxo UK. New appointments include Mohammed Khan taking over as COO at ATFX and Kim Reilly joining Pepperstone from FP Markets to head client experience. Meanwhile, Madalina Rotaru has departed from her position as COO of NAGA Group.
Moreover, Stanislav Bunimovich, COO of Finalto, has also left the company amidst ongoing management changes. Other executives transitioning into new roles include Oleg Mukhanov, who has joined Dividenz as Chief Financial Security Officer (CFSO), and Ahmed Eskandar, who is now the Sales Director for the MENA region at StarTrader.
In addition, Alexander Boruvanov has been hired by NAGA as Head of Global Markets, and Tariq El Amine has taken an art director position at Daman Markets after transitioning from Hantec. This activity shows a noteworthy reshuffling of talent within the FX and CFD landscape.
The week’s developments underline the dynamic nature of the FX industry, characterized by a mix of acquisitions, regulatory scrutiny, and significant personnel changes. Companies must adapt to these shifts to remain competitive and compliant within an ever-evolving market environment.