Japanese Small Sized Brokerage ARENA FX Sold, Valued at $1.33m

Consolidation in the foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term industry is even reaching destinations where regulatory burdens are a thing of the past. The saturated Japanese market, which also the biggest in terms of trading volumes, is seeing a small deal between two bigger companies - Nippon Rad and Excite Japan.

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The software company Nippon Rad, which owns ARENA FX as part of its portfolio of assets, decided to divest away from foreign exchange trading. Excite Japan, which is an online informational portal, has decided to purchase an 86.6% stake in the brokerage for ¥129.9 million ($1.15 million).

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The deal values ARENA FX at ¥150 million ($1.33 million), making it a small brokerage for the Japanese market.

The conglomerate culture that has been at the core of the Japanese and Korean economies for decades continues to dominate the market. Smaller companies are usually taken over and integrated into the services portfolios of bigger ones.

Excite Japan is operating a wide-ranging portfolio of online services, divested across multiple sectors. Most recently the company made a seed round investment in video ad network Open8.

The cultural differences on the Japanese market are material to the Western world. On this note, the biggest brokerage in the world by volume, GMO Click, is also part of the conglomerate culture, with its parent company GMO Internet being focused on a multitude of ventures in the online space.

The announcements did not elaborate on further details of the deal. One factor for M&A that is material in Europe and non-existent in Japan is regulatory uncertainty. The country was at the forefront of changes to Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term levels in the aftermath of the Great Financial Crisis of 2008. The Japanese regulators decreased leverage for retail clients in two steps, to 1:50 and then to 1:25, over a couple of years.