News Nuggets | 22 August: DMALINK Partners with Danske; SoftBank's Arm Targets Mega IPO

ZilBank Eyes Business Opportunities in Bahrain

The US fintech entrepreneur, Sabeer Nelli is making a strategic move by expanding his business, ZilBank, to Bahrain. According to the company’s statement, the decision is driven by Bahrain’s favorable regulations, strong financial sector, and pivotal role as a gateway to the Middle East.

ZilBank’s products and services include a fee-free business checking account with multi-account management on a single platform, alongside instant money transfers and wire transfers. This step reportedly fosters growth and financial innovation in the region.

Oman Launches $370M Data Hosting and Crypto Mining Center

Oman’s Ministry of Transport, Communication, and Information Technology (MTCIT) launched a data hosting and crypto mining center costing USD $370 million in Salalah on August 13. Developed by Exahertz International, a subsidiary of Afaaq for Advanced Technologies, the facility boasts 11MW of initial capacity, scalable to support more than 15,000 mining machines by October.

In a statement, the Middle Eastern nation disclosed plans for crypto-mining data centers, with multiple centers set to be launched in Salalah and Al Jabal Al Akhdar. Additionally, the project aims to engage locals through employment and internship initiatives.

SoftBank’s Arm Holdings Pursues Landmark IPO amid AI Revolution

Arm Holdings, the subsidiary of SoftBank Group, has submitted an application for what could become the largest initial public offering (IPO) in the US for 2023. The IPO filing, led by Barclays, Goldman Sachs Group, JPMorgan Chase & Co., and Mizuho Financial Group, signals an important step in the tech space, according to a report by Bloomberg.

Arm plans to start its roadshow in early September, followed by IPO pricing in the subsequent week, with expected valuation estimates ranging from USD $60 billion to USD $70 billion. While the initial target was to raise up to USD $10 billion, SoftBank’s decision to retain a larger stake after acquiring Vision Fund’s shares might influence the final figures.

UK’s FCA Revokes MECO Group’s Regulatory Permission

The UK’s Financial Conduct Authority (FCA) has announced the cancellation of the Part 4A permission previously granted to the MECO Group. This cancellation effectively terminated the MECO Group’s authorization to conduct regulated activities, the regulator said.

However, the regulatory reports submitted by the group for the period spanning April 1, 2022, to March 31, 2023, revealed no income generated from the approved regulated activities. Additionally, there is reportedly no evidence suggesting that the company has been actively conducting these activities.

ASIC Takes Action on Sydney Adviser

On 5 July 2023, ASIC started legal proceedings against the former Sydney financial adviser, David Valvo and his affiliated company, Your Financial Freedom Pty Ltd. The court subsequently froze their assets, prevented Valvo from departing Australia, and mandated he surrender his passport.

Investigations into the financial services and superannuation fees charged by both parties between 2015 and 2021 are ongoing.

"The orders were varied on 7 July and 4 August 2023 with Mr Valvo's consent. The matter is listed for a case management hearing on 29 September 2023," ASIC commented.

DMALINK Partners with Danske Bank

DMALINK, an EM-focused institutional FX ECN, has enhanced its Scandinavian currency offerings by partnering with Danske Bank A/S. This partnership will let DMALINK's buy-side clients access specialized liquidity for Scandinavian currencies. Both firms are excited about the partnership, noting its alignment with their growth objectives.

"Scandinavian currencies such as DKK, NOK, and SEK are important to our clients' portfolio. Users can access Danske Bank's tailored pricing across pre-set liquidity pools, underpinned by advanced analytics," Michael Siwek, the Founding Partner and Global Head of Sales at DMALINK, commented.

SoftBank's Arm Targets Mega IPO

SoftBank Group Corp.'s Arm Holdings Ltd. is progressing towards what could be 2023's biggest initial public offering (IPO). The IPO, led by multiple renowned banks, aims to capitalize on Arm's potential in artificial intelligence computing. The forthcoming debut could influence other companies' IPO strategies and is expected to boost SoftBank after its previous losses.

Arm initially targeted raising between $8 billion and $10 billion for its IPO. However, this goal might be adjusted downwards as SoftBank has chosen to retain a larger portion of the company after acquiring Vision Fund's share. According to the documents, this purchase set Arm's valuation at over $64 billion.

Marex Announces H1 2023 Results

Marex Group plc showcased impressive results for the first half of 2023, marking a significant growth in revenue and profitability. Benefiting from strategic investments and acquisitions, Marex has expanded its global presence and improved margins.

The acquired ED&F Man Capital Markets business is performing well, and Marex continues its focus on sustainable energy solutions.

Eurex Introduces Daily Options

Eurex will launch Daily Options for the EURO STOXX 50 Index, addressing the rising institutional demand for short-term expiry options. These new options will be settled based on the day's closing index price. This innovative solution caters to investors aiming to adjust their strategies around specific market events.

"Particularly against the backdrop of increasingly volatile markets, Daily Options are another innovative solution for the professional market to efficiently manage exposures in a regulated and transparent market environment," Randolf Roth, the Member of the Eurex Executive Board, said.

Bill St. Louis Heads FINRA's Enforcement

FINRA has appointed Bill St. Louis as its Head of Enforcement. St. Louis, who has extensive experience in FINRA, will now oversee around 350 enforcement staff across the US. Robert Cook, the CEO of FINRA, expressed confidence in St. Louis's capabilities and his commitment to maintaining market integrity.

"It is a privilege to lead such a talented and expert group of Enforcement professionals who are dedicated to FINRA's mission of investor protection and market integrity," St. Louis commented. "I look forward to strengthening FINRA's Regulatory Operations, ensuring integrated oversight and increasing safety in the market as we advance our important work through the regulatory opportunities and challenges ahead."

SFC Penalizes China Industrial Securities

The Securities and Futures Commission (SFC) fined China Industrial Securities International Brokerage Limited $3.5 million for lapses in monitoring suspicious trading and recording client orders. SFC's investigations revealed that the company didn't effectively implement post-trade monitoring and failed to comply with telephone order recording regulations.

SEC Charges Fintech Adviser Titan

The SEC has charged fintech investment adviser, Titan Global Capital Management USA, with deceiving investors through its advertisement content. Titan agreed to pay over $1 million without admitting guilt to settle the allegations. The charges pertain to misleading statements on hypothetical performance metrics.

"The Commission amended the marketing rule to allow for the use of hypothetical performance metrics but only if advisers comply with requirements reasonably designed to prevent fraud," Osman Nawaz, the Chief of Enforcement's Complex Financial Instruments Unit at the SEC, commented.

Auros Integrates AWS Nitro Enclaves

The crypto trading firm, Auros announced its integration with AWS Nitro Enclaves to fortify its on-chain trading security. This advanced security solution offers isolated computing environments, bolstering the safety of Auros' trade executions and data. The move aims to shield Auros from potential threats, ensuring the secure handling of sensitive data.