The collapse of Alpari UK Limited was one the staggering results of the game-changing CHF event. While the global group has made an evident effort to make clear its assets are unrelated to the UK branch, it seems that shockwaves are reaching its shores, particularly in the Middle East.
Forex Magnates has learned that several contenders have been actively engaged in negotiations over the group's regional asset.
Alpari Group's Chairman of the Board of Directors and major shareholder, Andrey Dashin, said the company is "unable to disclose further information or make any statements."
A Gateway to MENA, with Baggage
With staff of as many as 40 employees, existing regulatory license and relationships with local IBs, Alpari ME could be signaled out as a potential growth generating investment.
A few months back, we saw Western players launching products and services catering to Arab clientele's needs. UFX, most notably, has introduced a six days trading plan, combined with a CFDs offering for local shares, while Technology Provider Panda TS has reported a growing demand for Swap-free accounts.
Such a package could be appealing for emerging brokers with available cash who are seeking inroads into the Middle East and North Africa space. Quite a few Cypriot players could be eyeing this kind of business opportunity.
On the other hand, a bid for Alpari ME has its own perils. Over and above the high maintenance and salaries costs of at least $250K per month, the unit may come with its problematic baggage of liabilities.
Local Operation
While the local license is the major selling point for foreign contenders, the asset's operations could certainly interest local competitors as well. It makes more sense for a regional industry participant like ADS Securities, which has recently launched retail trading section in its UK entity, to recruit the unit's staff as a whole. Such a move will allow it to absorb the unit's IBs, contacts and sales capacities with no strings attached to the existing structure.
Again, it is important to point out that Alpari Group’s global entities are not formally related to Alpari UK Limited, which is under special administration and the fate of its international assets remains unclear.
However, recent developments indicate that the Dubai office might be affected by the chain of events sparked by the Swiss National Bank's sudden drop of the EUR/CHF floor on January 15.
