Under New Management: The Ever Decreasing Circles Of Small-Time M&A Activity
Thursday,19/12/2013|13:12GMTby
Andrew Saks McLeod
Maintaining market share in an industry increasingly dominated by large conglomerates is becoming a challenge for smaller firms. CTOption has been sold to ex-CTO of Dealserv, which in turn has offloaded SkyFX and FXTG.
Establishing a new binary options firm with its own dedicated technology solution is something of a mammoth task these days. Especially in an industry segment which is dominated by four major platform providers, for which the modus operandi is to outsource the brokerage side of the business to a series of brands, which are ever increasing in number.
CTOption is a case in point. The firm was founded in late April this year by ex - ITG Investment Technology Group executive Zacky Pickholz, who sold Polar IO Software Ltd. to technology provider Panda TS in order to establish CTOption as a binary options broker with its own platform technology from the outset.
Just a few months have passed since the establishment of CTOption, and Forex Magnates has been informed that Mr. Pickholz sold the company this month, whilst still in its relative infancy.
CTOptions' new ownership continues the company's ethos of technology over sales. Whilst Mr. Pickholz confirmed to Forex Magnates that he has moved on, Mr. Pickholz did not proffer the details of the transaction, citing that "The sale of the business was carried out by a partner rather than myself."
White Elephant?
With the binary options sector having become increasingly crowded, and the vast majority of today's existing and new brands opting for platforms from SpotOption, MarketsPulse, TechFinancials and TRADOLOGIC, it is apparent that there is perhaps little room for smaller, innovative firms to offer brokerage services as well as technology under one brand.
Similarly, with unregulated retail FX firms no longer able to gain the requisite market share, the acquisition of recently established binary options firms such as this may represent either a means of entering a niche market share, or could be considered a white elephant, depending on perspective.
SkyFX and FXTG Sold as Going Concern
Sources close to the transaction has explained to Forex Magnates that Dealserv's other brands, Cyprus-based SkyFX and the firm's Australian subsidiary FXTG, have both been sold to UTrade CEO Aviv Talmor, signalling the end of the group's operations under its original ownership.
Whilst the rapid growth of the binary options sector in such a short period of time has generated something of a proliferation of brands which operate in specific markets, mainly Cyprus and Japan, following the national regulatory authorities of those jurisdictions having recognized binary options as a bona fide financial instrument, for newer entrants to the market, life is not quite so simple.
A matter for consideration is perhaps whether the establishment is sustainable at its current level, with so many similar brands vying for the same market share, or whether the off-Exchange binary options industry as a whole will need to follow in the footsteps of the retail FX industry and commence an evolutionary period, thus differentiating one from another, and catering for today's more informed customer base.
Establishing a new binary options firm with its own dedicated technology solution is something of a mammoth task these days. Especially in an industry segment which is dominated by four major platform providers, for which the modus operandi is to outsource the brokerage side of the business to a series of brands, which are ever increasing in number.
CTOption is a case in point. The firm was founded in late April this year by ex - ITG Investment Technology Group executive Zacky Pickholz, who sold Polar IO Software Ltd. to technology provider Panda TS in order to establish CTOption as a binary options broker with its own platform technology from the outset.
Just a few months have passed since the establishment of CTOption, and Forex Magnates has been informed that Mr. Pickholz sold the company this month, whilst still in its relative infancy.
CTOptions' new ownership continues the company's ethos of technology over sales. Whilst Mr. Pickholz confirmed to Forex Magnates that he has moved on, Mr. Pickholz did not proffer the details of the transaction, citing that "The sale of the business was carried out by a partner rather than myself."
White Elephant?
With the binary options sector having become increasingly crowded, and the vast majority of today's existing and new brands opting for platforms from SpotOption, MarketsPulse, TechFinancials and TRADOLOGIC, it is apparent that there is perhaps little room for smaller, innovative firms to offer brokerage services as well as technology under one brand.
Similarly, with unregulated retail FX firms no longer able to gain the requisite market share, the acquisition of recently established binary options firms such as this may represent either a means of entering a niche market share, or could be considered a white elephant, depending on perspective.
SkyFX and FXTG Sold as Going Concern
Sources close to the transaction has explained to Forex Magnates that Dealserv's other brands, Cyprus-based SkyFX and the firm's Australian subsidiary FXTG, have both been sold to UTrade CEO Aviv Talmor, signalling the end of the group's operations under its original ownership.
Whilst the rapid growth of the binary options sector in such a short period of time has generated something of a proliferation of brands which operate in specific markets, mainly Cyprus and Japan, following the national regulatory authorities of those jurisdictions having recognized binary options as a bona fide financial instrument, for newer entrants to the market, life is not quite so simple.
A matter for consideration is perhaps whether the establishment is sustainable at its current level, with so many similar brands vying for the same market share, or whether the off-Exchange binary options industry as a whole will need to follow in the footsteps of the retail FX industry and commence an evolutionary period, thus differentiating one from another, and catering for today's more informed customer base.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
FMLS:24 | Shaping the Next Era of Financial Evolution
FMLS:24 | Shaping the Next Era of Financial Evolution
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
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Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
#fmls #fmls24 #fmevents #financemagnates #forex #payments #crypto #events #london #fintech #ai #generativeai #technology #onlinetrading #forex #investing #investors #tech
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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