Finance Magnates has learned that Playtech has been quietly reshuffling some of its operations. According to information listed on the Chinese website of Markets.com, the TradeFX subsidiary dedicated to financial trading has been actively looking for new ways to expand its business in China. After some considerations, the company switched the regulatory framework of its operation in China under Australian law by using its Sydney based subsidiary, STA Global Investments.
The previous operator of the Chinese subsidiary of Markets.com, Safecap, remains as the operator of the European entity of Markets.com, and the change appears to be regional. Playtech is already using its ASIC regulated subsidiary STA Global Investments to operate its binary options TopOption brand in the region.
After a number of brokers registered and regulated in Cyprus have been actively targeting the Chinese market and subsequently leaving a footprint of negative experiences, the move by Playtech is one that is aiming to differentiate its subsidiary from the rest of the fish in the pond.
The Aussie safe haven
In September 2014, Chinese traders stormed into the offices of IronFX demanding an explanation about their unfulfilled withdrawal requests, which were all managed by the Cyprus regulated subsidiary of the company, IronFX Global.
A number of other brokers have been attacked at some Forex expos for being dishonest, with a common denominator being a CySEC license. With the trading community heavily criticizing a number of Cyprus based brokers, companies are resorting to ASIC regulation as a safe haven.
While a number of brokerages have been targeting Chinese clients from Australia in recent years, the regulator has not been very welcoming of the practice. A number of brands are getting an ASIC license to provide their services across the Far East, despite the regulatory discouragement.
A list of brokers are actively marketing ASIC regulation as a guarantee for honest business conduct, which for the most part is true. The Australian regulator has repeatedly claimed on its part that it is not responsible for protecting clients outside of the country, however according to legal experts from the land down under, there is no legal basis for the assertions made by the watchdog.
Finance Magnates has approached Playtech for a comment on the matter, however at the time of publication no official statement has been received.
