Fazzaco Weekly Digest: Growing Prop Firms; StoneX COO to StoneX COO; N26 Launches Joint Accounts in 21 Markets in Europe

Last week, there was significant industry attention as Chief Operating Officer Xuong T. Nguyen announced his departure from the well-known broker StoneX, where he had served for over a decade. His departure is scheduled for later in July.

In the crypto industry, Okcoin Europe has rebranded itself as OKX, further expanding the global influence of the cryptocurrency exchange.

In the fintech field, German digital bank N26 has introduced joint account services in 26 European countries. This initiative aims to simplify the management of shared wealth accounts.

Proprietary trading in the forex market is currently experiencing rapid development. Last week, two major fintech firms, FPFX Tech and Your Bourse, formed a partnership to offer enhanced support for proprietary trading companies.

The growing popularity of prop trading was also discussed in the latest audio article by Fazzaco. 

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

1. Listen to the Article: Limited Brokers + Increasing Retail Trading Demand = Growing Prop Firms​

Since last year, Fazzaco has closely observed the rise and development of the proprietary trading sector. Prop trading firms, sometimes referred to as Trader Funded Firms (TFF), are hardly a new concept. Jason Kovalcin, the Business Development Manager at Tradeview Markets, mentioned in an exclusive interview with Fazzaco, "Proprietary trading firms have been around for decades in the Chicago trading community." However, the surge in prop trading primarily occurred in 2022. 

Today, we'll explore the equation that has fueled the sharp rise in the popularity of prop trading, and see if it is actually the case: Limited Brokers + Increasing Retail Trading Demand = Growing Prop Firms.

2. StoneX COO Xuong Nguyen to Resign

Xuong T. Nguyen, Chief Operating Officer of the diversified global brokerage StoneX Group Inc., to leave the group on July 1, 2024. Stuart Davison, current Deputy Chief Operating Officer of StoneX, will take over the COO role, effective July 1.

Nguyen has has been COO of StoneX since October 2015. Previously, he was Executive Vice President of the FCM Division of StoneX Financial Inc., and COO of MF Global. Besides, He was Chief Executive Officer of FCStone, LLC, StoneX's futures commission merchant which was subsequently merged into StoneX Financial Inc.

3. N26 Rolls Out Joint Accounts in 21 New Markets in Europe​

N26 AG, Europe's leading digital bank with a full German banking licence, announced that it has rolled out Joint Accounts in 21 new markets, including Austria, Belgium, Denmark, Estonia, Finland, Greece, Iceland, Ireland, Latvia, Liechtenstein, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden and Switzerland.

With Joint Accounts, N26 clients can manage their personal finances and finances shared with their partner, all within the N26 application without any extra charges. This streamlines the process of budgeting, expense tracking, and makes it easier to accomplish their mutual financial objectives.

4. Tradeweb to Acquire Investment Tech Firm ICD in $785M Deal

Tradeweb has entered into a definitive agreement to purchase Institutional Cash Distributors (ICD), an investment platform based in Colorado, for $785 million with the deal expected to close in the second half of 2024.

Operating as an institutional money market fund portal, ICD provides investment technology for corporate treasury organisations trading short-term investments, and sported a daily balance average of more than $230 billion in 2023.

5. CFTC Report Shows Continued Retail Forex Funds Growth in US, Up 2.37% in February 2024​

The US Commodity Futures Trading Commission (CFTC) has released its latest monthly report, which shows that retail forex funds in February 2024 increased again by 2.37% M-o-M.

The report covers registered retail foreign exchange dealers (RFEDs) and broker-dealers operating in the US. These include CHARLES SCHWAB Futures & Forex LLC, Gain Capital Group LLC, IG US LLC, Interactive Brokers LLC, OANDA Corporation, and Trading.com Markets.

6. Okcoin Europe Rebrands to OKX, Names Europe General Manager

Okcoin Europe Ltd. has unveiled its rebranding to OKX, which allows customers in Europe to be served under the OKX brand, one of the biggest crypto exchanges by trading volume.

Besides, Erald Ghoos has been appointed as Europe General Manager.

7. FPFX Tech and Your Bourse Join Forces to Offer Integrated Tech Support for Prop Trading Firms​

FPFX Technologies, LLC (FPFX Tech), a leading force in prop trading technology, and Your Bourse, a leading software solutions provider for retail and institutional MT4/MT5 brokers, have entered into a partnership to bring direct market access, institutional liquidity providers, and trading platforms to prop trading firms.

FPFX Tech Prop Trading Tech Kit, an end-to-end automated solution, can streamline the operational and administrative processes of prop trading/funded account firms, allowing them to scale business by reducing reliance on headcount. The Matching Engine, a pricing and matching technology provided by Your Bourse, allows brokers to effectively manage their order flow, pricing, and hedging strategies across different customer groups. Through the cooperation, FPFX Tech and Your Bourse will integrate their technical advantages to help prop trading firms to launch high-powered trading operations.