Fazzaco Weekly Digest: SCA Opens VASL Applications in UAE; ESMA's Supervisory Briefing Breakdown; Executive Moves Last Week

1. Listen to the Article: Copy Trading Under Scrutiny! ESMA's Supervisory Briefing Breakdown​

However, where there is popularity in trading, there are compliance risks, and copy trading is no exception. It brings a series of challenges related to appropriateness assessment, information disclosure, product governance, and remunerations. In late March 2023, the European Securities and Markets Authority (ESMA) published a supervisory briefing on copy trading services, as part of MiFID 2, aiming to raise the regulatory standards and consistency of copy trading services.

So, how important is this briefing? What impact will it have on the market, especially in countries within the jurisdiction of MiFID 2? Is the copy trading market still thriving in the year of 2023? How will affected brokers react to the challenges? These are the topics we will explore.

2. ThinkMarkets Grows APAC Presence with New Entity in New Zealand

ThinkMarkets, the multi-asset online brokerage with headquarters in London and Melbourne, continues expanding its footprints in the Asia Pacific (APAC) region, setting up a new branch in New Zealand.

This follows ThinkMarkets' entering Japanese FX trading market last February through the take-over of a Japanese financial services entity that holds a license from the Japanese Financial Services Agency (JFSA).

3. Plus500 Achieves Strong Performance in Q1 2023 with 64% Quarterly Increase in Revenue​

Plus500, a global multi-asset fintech group operating technology-based trading platforms, today released its trading data for the first quarter ended March 31, 2023, seeing a significant increase of 64% on a quarterly basis in revenue.

Revenue in Q1 2023 reached $207.9 million, jumping 64% from $126.7 million in Q4 2022.

4. SCA Opens Virtual Asset Service License Applications in UAE

Fazzaco learned that the Securities and Commodities Authority (SCA), the financial regulator of UAE, announced this Wednesday that it started receiving license applications from companies wishing to provide virtual asset services following the approval of its board of the decision regulating virtual asset service providers.

At last year's end, the UAE Cabinet issued Resolution No. 111 of 2022 Regulating Virtual Assets and Virtual Asset Service Providers, which mandated that the SCA shall have the jurisdiction to issue decisions to regulate virtual asset transactions and license virtual asset service providers.

5. Exclusive: Clients Profitability Report of 36 Retail Brokers in April, Avg Loss Lands at 73.34%​

Fazzaco collected the data of 36 brokers in April 2023. Among them, since OvalX sold its client resources to Capital.com in February 2023, it was replaced by Capital.com henceforth; in addition, Gain Capital's data has been updated to Forex.com's data.

Among these 36 brokers, an average of 26.66% of client accounts were profitable this month, while 73.34% of them suffered losses. Among them, Blackwell Global ranked first with a high winning rate up to 56.67%. Darwinex followed closely, with an account winning rate of 42%. Other brokers in the top 5 include FXOpen (40%), Swissquote (38%), City Credit Capital (35.02%) and eToro (33%).

6. Exclusive: BidX Markets Hires Nicole Simpson as Senior Operations Executive

Fazzaco learned that BidX Markets, a global regulated multi-asset liquidity solutions provider, has selected Nicole Simpson, who boasts almost 10 years experience in financial services, to assume the role of its Senior Operations Executive.

Nicole joined BidX Markets from OvalX, a spread-betting and CFD provider based in London, where she has been for more than two years, with positions including Senior Client Support Associate and Client Support Executive. The broker was officially closing, Fazzaco reported in February.

7. Exclusive: Exness Promotes Negin Negahdari to Business Development Manager

Fazzaco has learned that Exness, the global leader in multi-asset trading, has promoted Negin Negahdari to Business Development Manager, leading the company's business in the United Arab Emirates.

As seen on her online profile, Negahdari joined Exness as a Key Account Manager in April 2021. Prior to joining the broker, she served as an Account Manager at Accuindex, a multi-asset Forex and CFD investment company, for over two years before being promoted to Senior Account Manager in July 2020.