Weekly Focus: Czechia Will not Regulate Prop Demo Accounts, Saxo Exits Hong Kong, and More

Demo Account Prop Trading Platforms Do Not Need Authorisation: Czech Regulator

Starting our weekly news roundup, demo account prop trading services without real-market executions and subsequent settlements cannot be categorized as investment services under existing regulations, the Czech National Bank (CNB) recently clarified in a Q&A published on its website.

The clarification came months after the Czech regulator exclusively told Finance Magnates that some prop trading business models “may be subject to the MiFID regulatory framework.” With the recent clarification, it can be assumed that the CNB is differentiating between the two prop trading models: demo accounts and real accounts.

Prop Trading and CFD Brokers

RegTech firm Muinmos and technology provider Brokeree Solutions announced a partnership focused on proprietary trading compliance and risk management for regulated brokers. This move came amid ongoing discussions about the legitimacy and regulation of prop trading in the financial industry.

The collaboration integrates Brokeree's Prop Pulse technology for account management and risk mitigation with Muinmos' client onboarding platform. This combination is intended to offer FX brokers tools for regulatory compliance and risk control in prop trading operations.

Centroid Integrates Scope Prime’s Liquidity Pools Through API Connection

Scope Prime, Rostro Financial Group's institutional liquidity brand, announced its integration with Centroid Solutions’ platform via Centroid Bridge. This integration allows Centroid’s clients to access a wide range of deep liquidity pools offered by Scope Prime.

The move aims to update liquidity management, enhance operational efficiency, and improve connectivity across the platform. “We understand the importance of always having best-in-class market connectivity in place across all assets,” commented Daniel Lawrance, Chief Executive Officer at Scope Prime.

DXtrade Partners with Finalto

DXtrade, Devexperts' flagship trading platform, collaborated with Finalto. This partnership aims to enhance liquidity provider services for brokers using the DXtrade platform. Finalto, known for its liquidity aggregation and risk management solutions, will integrate its services with DXtrade's trading ecosystem.

This move is expected to give brokers access to Finalto's liquidity pools, which are designed to connect market demand with supply across over 3,000 instruments in multiple asset classes. Finalto recently introduced the Finalto Broker Handbook, a guide designed to help brokers build and sustain thriving retail brokerage businesses.

LMAX Group Enters FX Swaps with FX HedgePool Acquisition

LMAX Group, which offers institutional execution venues for FX and digital assets trading, acquired FX HedgePool, an institutional swaps matching service, thus further expanding its offerings in the sector. However, the financial details of the acquisition remain unknown.

The latest acquisition comes 12 months after LMAX bought the FX business of Cürex, a New York-based company specializing in institutional foreign exchange execution services and data analytics. FX HedgePool has expertise in the FX swaps and forwards market. Its network of buy- and sell-side relationships complements LMAX's existing institutional client base in its FX business.

Ebury Starts Offering Payments Services to FX and CFDs Brokers

Ebury, a Santander-owned payments company, expanded its scope of clientele and has been onboarding forex and contracts for difference (CFD) brokers, Finance Magnates learned from an industry source in Cyprus.

The payments giant officially started to onboard FX and CFDs brokers in December 2023. It currently has more than 20 brokers on its platform, with over a dozen being active. Interestingly, Ebury only recently began pitching its services to FX and CFDs brokers and did not actively target the ones already onboarded.

Saxo Expands Offerings for “Buy-and-Hold Investors”

The UK unit of Denmark-headquartered Saxo Bank launched SaxoInvestor, an investment platform targeted at “buy-and-hold and active investors” in the country. According to the official press release, the new platform offers access to more than 70,000 instruments, including stocks, ETFs, bonds, and mutual funds.

“With this new user-friendly platform, SaxoInvestor delivers top-tier insights and diverse investment themes, levelling the playing field for investors of all backgrounds,” said Andrew Bresler, CEO of Saxo UK.

Saxo Closes Hong Kong and Shanghai Offices

Saxo Bank A/S, a Denmark-based trading platform, is closing its office in Hong Kong. The company cited changes in the business environment as the reason. In a statement this week, Saxo described the decision as “difficult but necessary.” It has confirmed that it has stopped accepting new clients and that its main focus is managing the “smooth offboarding process” for affected clients and partners.

The decision to exit Hong Kong follows broader shifts in the city's geopolitical landscape. Beijing's increased control over the financial hub has impacted its business environment. Although Chinese stocks have recently rebounded due to a stimulus package, investor confidence remains divided over the sustainability of this recovery.

Tools for Brokers Bets on Dubai with New Office Launch

Tools for Brokers (TFB), a technology provider for the financial services industry, announced the opening of a new representative office in Dubai. With this step, the company wants to build its expansion strategy in the Middle East and North Africa (MENA) region.

The decision to establish a presence in Dubai comes as the emirate continues to cement its position as a global financial hub. With its strategic location and robust infrastructure, Dubai has become an increasingly attractive destination for financial technology companies seeking to tap into the region's growing market. The move aligns with TFB's broader strategy to strengthen its foothold in the MENA market.

Tauro Markets’ CEO Discusses Expansion Plans amid Launch

In our exclusive news, Tauro Markets, a next-generation retail brokerage firm financially backed by Synervest Group, is launching with the financial backing of the newly formed Synervest Group, as announced in a press release earlier today. The broker's product offerings extend beyond traditional CFDs, aiming to deliver a wider range of innovative financial instruments to both retail and institutional investors worldwide.

“While we have been developing the platform and refining our offerings over the past five years, this is the point at which we are fully presenting our expanded services and advanced trading technologies to the market,” Alexander Oelfke, the CEO and Co-founder of Tauro Markets, said. “It’s a significant milestone that signals our readiness to serve clients globally with our next-generation trading platform.”

UK Financial Regulator Warns Against IC Markets Global's Services

On the regulatory front, the Financial Conduct Authority (FCA) issued a warning regarding IC Markets Global, indicating that the company may be promoting financial services in the UK without proper authorization.

In a notice published this week, the regulator mentioned that IC Markets Global may be offering financial services in the UK without its permission. Finance Magnates sought comments from the company regarding the regulator’s notice, and we will update this report once we get their feedback.

ASIC Cancels CFD Broker Prospero Markets' License

The Australian Securities and Investments Commission (ASIC) canceled the operational license of the now-defunct Prospero Markets, which offered contracts for differences (CFDs) instruments to retail traders. The cancellation of the Australian Financial Services (AFS) license, effective September 25, came after the regulator suspended it in December 2023.

The broker is currently in liquidation after a federal court, upon the application of ASIC, ordered the winding up of its business on “just and equitable grounds.” “Under the Corporations Act, ASIC may suspend or cancel an AFS license if the licensee is being wound up or if the licensee has ceased to carry on a financial services business,” the regulator noted.

Cybersecurity Losses Surge to $2.1 Billion in 2024

The year 2024 has recorded unprecedented losses in the cybersecurity landscape. By the end of Q3, they reached $2.11 billion in total, surpassing all the losses from 2023, Cyvers' report shows. The year has witnessed a sharp increase in hacking incidents. This highlights a growing threat landscape that necessitates immediate attention, as shown by the significant breach of WazirX and DMM Bitcoin exchange.

In the first three quarters of 2024, losses have already exceeded the total for 2023. Key statistics illustrate this trend: from January to September 2023, losses amounted to $1.23 billion, while the total for January to December 2023 was $1.69 billion. The losses from January to September 2024 represent an approximately 72% increase compared to the same period in the previous year.

Iran’s Missile Strike on Israel Sends Crypto Prices Tumbling

In the crypto space, Bitcoin, Ethereum, and Solana experienced a sharp decline as geopolitical tensions between Iran and Israel disrupted the crypto market, raising concerns over the resilience of digital assets as safe havens.

This week, Iran launched a series of missiles at Israel, potentially signaling the escalation of the conflict in the Middle East. While the incident reverberated through traditional markets, it also caused a sharp reaction in the cryptocurrency sector. Bitcoin, Ethereum, Solana, and other major cryptocurrencies saw significant price drops as traders rushed to assess the fallout from the geopolitical instability.

Ripple’s XRP Price Explosion: Why It’s Happening and What’s Next

XRP took a wild ride, surging in price faster than you can say “blockchain.” The recent increase of around 5% is being attributed to several factors, and let’s be honest, some of them are pretty juicy. First off, whale behavior is at the forefront of this crypto carnival. Large-scale investors, often called "whales," scooped up a staggering 380 million XRP coins in a single swoop.

Why? Because they see something in XRP that the average Joe might overlook. According to various analysts, this accumulation indicates a solid belief in XRP’s future prospects. When whales are hoovering up assets like they’re plankton, it typically signals confidence in the asset’s growth trajectory.

The US Port Strike Is Over

Lastly, after days of gridlock and uncertainty, the US port strike is over. The longshoremen strike, which threw the shipping industry into turmoil this week, finally reached a conclusion that saved the economy from potential disaster, with negotiations coming to a close.

The strike, initiated by the International Longshoremen’s Association (ILA), froze operations at major US ports for days, threatening to disrupt an already fragile supply chain. This standoff led to a massive queue of ships waiting to unload their cargo, sparking fears of a nationwide supply chain bottleneck as was with the COVID pandemic.