Fazzaco Weekly Digest: Eurex Sees Strong Growth in 2022; eToro Names New CFO; 25 FX Brokers Secure Licenses

1. Eurex Sees Strong Growth in the Full Year and December 2022​

Eurex, the leading European derivatives exchange, released its trading figures for the full year and December 2022, unveiling an 8% increase in traded contracts in December compared to December 2021, led by interest rate derivatives with plus 24%. 

Overall, volumes in 2022 grew by 15% to 1,955.7 million contracts. Over the complete year 2022, index derivatives and interest rate derivatives grew similarly, by 21% and 20% respectively. 

2. Meron Shani Rises to eToro Group CFO

Fazzaco learned that eToro, the global leading social investing network, has promoted Meron Shani to its new Group Chief Financial Officer (CFO), based in the firm's Tel Aviv offices.

Shani has been part of eToro for approximately four years. Prior to the new role, he served the company as the Vice President of Finance. Previously, he has spent more than eight years at PokerStars, where he joined as a Finance Accounting Director, then rose to Director of Corporate Finance Controller and later Finance Director.

3. 25 FX Brokers with New Licenses in 2022: "Destination, MEA!"​

For investors, a broker has to be well-regulated before it gets chosen. There are many types of licenses, which not only determine in which jurisdiction(s) they are allowed to operate brokerage, but also the regulators that issue the license are closely related to how well a broker's reputation is in the industry. Forex broker licensing has always been one of the most discussed topics in the FX B2B community. Fazzaco, too, has been dedicated on the updates of FX broker licensing. As a part of the 2022 Yearbook, let's go back in 2022 and have a look at some of the firms that have obtained new licenses during the year, and find out what market trends they have revealed.

4. UK Enforces Crypto Tax Break for Foreigners Who Appoints Local Brokers to Invest

From January 1, 2023, the United Kingdom has implement a tax exemption policy for foreign investors who appoint local brokers or investment managers to invest in cryptocurrencies.

The nation already provides resident cryptocurrency dealers with tax advice. HM Revenue and Customs (HMRC) released a consultation in July to solicit opinions from experts and investors on how it should tax decentralized finance.

5. China's Securities Regulator Asks Futu and UP Fintech to Stop Soliciting Mainland Clients​

China's securities regulator said on Friday that online brokerages Futu Holding and UP Fintech Holding have conducted unlawful securities businesses, and will be banned from opening new accounts from mainland Chinese investors, sending their shares tumbling.

The long-awaited official penalty comes more than a year after Chinese official media warned that New York-listed Futu and UP Fintech, which do not have licences in China, face regulatory risks.

6. Forex Financial Promotions: Why Being Compliant Matters Now More Than Ever Before?

Every business around the globe needs a solid customer base to ensure its survival. Forex brokers are no exception.

Financial promotions, according to the UK Financial Conduct Authority (FCA), are a communication that contains an invitation or inducement to engage in a financial product or service, which has a significant influence over the financial decisions made by consumers. Such communications can take various forms, including advertisements placed through print, website or broadcast, emails, or social media, etc.

7. Interactive Brokers Reports 21% Y/Y Decline in DARTs in December 2022​

Interactive Brokers, one of the biggest US-based brokerage firm, has posted its trading volumes for the month of December, indicating a drop in DARTs on a YoY basis.

More specifically, the broker registered a DARTs of 1.751 million, 21 pecent lower than the previous year and 10 percent lower than the previous month. In December, Interactive Brokers's ending client equity reached $306.7 billion, down by 18 percent compared with last year and 3 percent compared with the last month. Ending client credit balances came in at $95.2 billion, up by 9 percent on a YoY basis and decreased by 1 percent on a MoM basis.