Fazzaco Weekly Digest: Abrdn Group CEO to Leave; FTMO Branches Out into Brokerage; Everything Brokers Need to Know About the World's First AI Act

Last week witnessed significant changes in the C-level executive positions of several financial services companies, such as Abrdn, TopFX​, Saxo Bank​, and LMAX Group. Notably, UBS​ underwent a major change in its executive committee.

The crackdown on the proprietary trading industry by trading platform developers persists. SurgeTrader, a Florida-based proprietary trading firm, officially announced its decision to cease operations following the suspension of its platform licenses by MetaQuotes and Match-Trade Technologies. Another UK-based prop trading platform, Equity Edge​, faced a sudden loss of access to MT5 last Monday. Consequently, it decided to switch to Match-Trader to resume its trading services.

In recent years, the distinction between brokers and prop traders has become increasingly blurred. A number of brokerage firms have ventured into launching their own prop trading platforms. Similarly, prop trading firms, like the industry giant FTMO, have demonstrated a desire to expand its operations into the brokerage business.

In the fintech arena, Fazzaco shed light on Estonia, an EU member state known for its high level of digitalization and the emergence of numerous fintech giants. This development in Estonia may serve as inspiration for fintech companies looking to foster entrepreneurship and drive their own growth. 

Additionally, the world's first AI Act is about to take effect, prompting brokers to enhance compliance and risk controls to prevent violations. 

Here are the related details, as well as some of the most read forex, crypto, fintech, and prop trading news pieces and articles from Fazzaco over the last week.

1. Stephen Bird to Leave Abrdn After Four Years as Group CEO​

UK asset management firm Abrdn has announced that its group CEO Stephen Bird is stepping down after four years in the role.

"Following the significant strategic repositioning of the company, the board and group CEO, Stephen Bird, have together agreed that it is the right time for Stephen to hand over the reins to the team he has assembled over the last four years," its latest statement reads.

2. FTMO Branches Out into Brokerage, Another Way Out for Fellow Prop Firms

Last week, we at Fazzzaco couldn't help but noticed several financial media outlets covered the appointment of Michael Kamerman, former CEO of Skilling, a retail forex broker, by FTMO, a major player in the proprietary trading industry. Kamerman's move to FTMO signifies more than just a typical executive shift within the industry; in fact, he brings with him extensive experience in the forex brokerage sector. Prior to his tenure at Skilling, where he spent four years, Kamerman had a lengthy 15-year stint at FXCM, a leading forex brokerage giant.

Kamerman's move sends a message to the prop trading community, which has recently faced regulatory scrutiny, indicating FTMO's intention to branch out into brokerage. Typically, especially during the past few years when everyone was crazy about prop trading, we've witnessed the opposite, and that is brokers branching out to prop, not the other way around.

3. Everything Brokers Need to Know About the World's First AI Act​

On May 21, 2024, the European Council gave the thumbs up to the EU AI Act after a four-year legislative journey. Typically, once the European Parliament and Council President sign off, the Act will hit the EU Official Journal and kick into gear within 20 days. This Act is a game-changer, being the world's first official regulation on AI tech globally.

The roots of the Act stretch back to 2020 when the European Commission issued the White Paper on Artificial Intelligence in February that year. In October of the same year, EU leaders deliberated on AI topics for the first time at the Council.

4. Prop Firm SurgeTrader Ceases Operations

Fazzaco has learned that SurgeTrader, a prop trading firm based in Florida, has ceased its operations after its license for the Match-Trader platform, provided by Match-Trade Technologies, was suspended a week ago.

SurgeTrader made an announcement on its official website stating, "It is with deep regret that we announce that as of today, Friday, May 24, 2024, SurgeTrader has closed and ceased all operations. Despite all of our efforts this week to get Match Trade Technologies to further communicate in an effort to resolve our trading platform termination, we have been unsuccessful."

5. Listen to the Article: Estonia Is More FinTech-Savvy Than You Ever Know​

People always have stereotypes about other countries they know little of. Financial industries , on the other hand, often defy such stereotypes because they are less influenced by national characteristics. Take Estonia, for example. When people think of this European country, they usually picture snowy places, a slow-paced life, saunas, and beautiful women.

However, what many might not realize is that Estonia is one of the most digitally advanced countries in the European Union. According to the digitalization data from Statista back in 2022, Estonia was in fact more digital than traditional European powerhouses like Germany, the UK, and France. For instance, global tech giants such as Skype and Wise were actually founded in Estonia.

6. Crypto Market Maker B2C2 Announces Partnership with Swissquote

B2C2, a global leader in institutional liquidity for digital assets, has partnered with Swissquote, the SwissLeader in online banking and financial services provider.

Developed by Swissquote, Swissquote Exchange (SQX) is a central limit order book (CLOB) providing deep liquidity as well as a healthy and efficient environment to trade cryptocurrencies to a broad range of market participants. Users can trade, hold and transfer actual crypto assets in their Swissquote account, backed by the security of a regulated Swiss bank.

7. Offshore Brokerage Cerus Markets Goes MetaTrader 5 for Multi-Asset Trading​

Cerus Markets, a global brokerage specializing in trading on cryptocurrencies, forex, stocks, and commodities, has announced the introduction of the MetaTrader 5 (MT5) trading platform for its clients.

With this launch, Cerus Markets will provide its traders with advanced trading tools, improved analytical capabilities, and access to a wider range of financial markets, including crypto-traditional pairings.