Fazzaco Weekly Digest: FTX to Pay Creditors 118%; IC Markets Obtains License in Kenya; What Do Brokers Do As More Traders Turn to Discord?

More than a year after filing for bankruptcy, crypto giant FTX, which once made waves in the crypto industry, submitted its reorganization plan to a U.S. district court last week, intending to pay its creditors 118% of their claims.

Other well-established players in the industry, such as Robinhood, Capital.com, and Tradeweb​, have also recently shared their latest financial data. Robinhood, for instance, achieved a record-breaking revenue of $618 million in the first quarter of this year. Additionally, Capital.com saw its trading volume exceed $1 trillion last year.

Furthermore, numerous financial service companies are actively expanding their market shares either through geographical expansion or by venturing into new business areas. For example, Irish broker AvaTrade has recently launched AvaFutures, a futures trading platform, to tap into the potential of the futures market. Similarly, Tradu, a multi-asset trading platform, has introduced a new cryptocurrency exchange to further capitalize on the growing crypto market. Additionally, IC Markets, an Australian trader, has successfully obtained a regulatory license in Kenya as part of its ongoing expansion efforts. 

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

1. FTX Files Consensus-Based Plan of Reorganization, Set to Pay Creditors 118% of Their Claims​

17 months after filing for chapter 11 in the District of Delaware, FTX Trading Ltd. (d.b.a. FTX.com) and its affiliated debtors ("FTX" or the "Debtors") on Tuesday filed their anticipated amended Plan of Reorganization (the "Plan") and accompanying Disclosure Statement (the "Disclosure Statement") with the U.S. Bankruptcy Court for the District Court of Delaware (the "Bankruptcy Court").

Subject to being finalized and approved by the Bankruptcy Court, the Plan contemplates the centralized distribution to customers and other creditors around the world of virtually all of the assets associated with FTX at the time of its collapse in November 2022, regardless of where the assets were located at that time.

2. IC Markets Bags Regulatory License in Kenya

Fazzaco learned that IC Markets, the Australia-based leading online trading provider, has secured a regulatory license from the Capital Markets Authority (CMA) in Kenya.

IC Markets acquired the new license through its Kenyan registered entity, IC Markets Kenya Limited, which has been allowed to operate as a non-dealing online Forex broker in the country.

3. Mark Sheng Elevated to Taurex's Commercial Director​

Fazzaco learned that Taurex, a broker offering Forex and CFDs and Zenfinex’s retail brand, has selected Mark Sheng to assume the role of Commercial Director, out of London.

Prior to the new role, Mark served Taurex as Head of APAC for more than two years. Before joining Taurex, he spent over four years at Ec Markets, the world's leading Forex broker,  as Sales Director. Previously, he held the role of Head of Chinese Desk across several brokers, including Trade Nation, OvalX and ActivTrades.

4. AvaTrade Steps into Futures Trading with the Launch of AvaFutures Platform

Fazzaco learned that AvaTrade, an Ireland-based online CFD & forex broker, has expanded into the futures markets through the intrduction of AvaFutures, a new futures trading platform.

As seen on the AvaFutures website, the new platform offers trading on mini and standard futures contracts, starting from $1.75 per standard per trade.

5. Multi-Asset Trading Platform Tradu Unveils New Crypto Exchange​

Tradu, a multi-asset trading platform, has introduced a new crypto exchange that currently grants traders and investors access to over 40 cryptocurrencies, including Bitcoin and Ethereum.

Launched by Stratos Group International, LLC, a subsidiary of Jefferies Financial Group Inc., at the end of 2023, Tradu offers a user-friendly eWallet that enables seamless transfers between trading and eWallet accounts, along with the convenience of virtual and physical debit cards.

6. Robinhood Achieves Record-Breaking Net Revenue of $618M in Q1 2024

US-based financial services company Robinhood Markets, Inc. ("Robinhood") published its financial results for the three months ended March 31, 2024 ("Q1 2024" or "1Q24"), revealing a significant increase in record revenues.

During this period, the company generated total net revenues of a record $618 million, representing a 40% increase compared to $441 million in the same quarter of the previous year and a 31% increase compared to $471 million the previous quarter.

7. Listen to the Article: What Do Brokers Do As More Traders Turn to Discord?​

At the end of April, Fazzaco learned that Match Trade Technologies had announced an update on their website, allowing users to log in with Discord accounts. In fact, whether it's brokers, prop firms, or fintech companies, they often provide direct login with the accounts of platforms where potential clients gather, such as Google, Reddit, or Microsoft accounts.

Match Trade's integration with Discord seems to offer a fresh perspective to the industry. After all, Discord, once exclusively for gamers, has evolved into a new gathering place for many retail traders, especially prop traders.