Fazzaco Weekly Digest: LMAX Group Acquires Cürex's FX Business; Cboe Global Markets Names New Global Heads; Follow-up on the Celsius Crisis

Last week, LMAX Group’s acquisition of Cürex’s FX business received widespread attention in the industry. This transaction will further expand LMAX's customer base, drive its international business growth, and consolidate its industry-leading position.

In terms of personnel changes, Cboe Global Markets promoted two new global business executives, responsible for its derivatives business, and data and access solutions respectively. On the contrary, both LMAX Group​ and Tickmill have experienced executive departures.

The crypto industry remains troubled. While the bankruptcy of Celsius, a crypto lender, was still unfolding, a fraud scandal involving cryptocurrency exchange JPEX (which is not associated with Japanese Exchange) has has cast a shadow over Hong Kong's VASP licensing system and may urge greater oversight of the industry.

Besides, CySEC issued a reminder to companies offering CFDs and other leveraged products to Spanish retail investors to comply with Spain's new CFDS regulations, which came into effect in July.

The name changes of FXCM Australia, tZERO ATS​ and Binance social platform, Binance Feed​, have also sparked discussions in the industry.

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 past week.

1. LMAX Group to Acquire Cürex's FX Business to Strengthen Institutional Offering​

LMAX Group, a global financial technology company and the leading independent operator of multiple institutional execution venues for FX and crypto currency trading, announced on Tuesday (October 10) that it has agreed to acquire the FX business of Cürex, a New York City‐based institutional FX execution services and data analytics company.

Through this transaction, LMAX Group will accelerate the growth of its U.S. business and enhance its technological capabilities while enhancing customer and liquidity relationships in a core market. Cürex's bank and buy-side relationships will complement the existing institutional client base of LMAX Group's FX business.

2. Cboe Global Markets Names Global Head of Derivatives, and Global Head of Data and Access Solutions

Cboe Global Markets (Cboe), the leading exchange network for global derivatives, foreign exchange (FX), digital asset and securities trading solutions, announced on Wednesday (October 11, 2023) that it has appointed Catherine Clay as Global Head of Derivatives, a new role for the organization, and elevated Adam Inzirillo to Global Head of Data and Access Solutions.

Catherine has spent around eight years at Cboe altogether. Most recently, she was Global Head of Data and Access Solutions and Digital. In the new role, she will focus on further strengthening and building out Cboe's global derivatives network and customer base.

3. Will JPEX Scandal Shake Up Hong Kong's VASP Licensing System?​

Hong Kong, as an international financial hub, naturally stays at the forefront of the crypto business. Fazzaco has published several articles discussing the launch of Hong Kong's VASP (Virtual Asset Service Provider) licensing system by Hong Kong Securities and Futures Commission (SFC): A Guide to HK SFC's Latest Consultation on Virtual Assets Regulation; and The Race for Hong Kong VASP License Begins, Which Exchanges Will Make the Cut? However, the late-September allegations against the JPEX for suspected fraud has cast a shadow over Hong Kong's VASP licensing system.

First and foremost, JPEX might sound like Japanese Exchange, but it is, in fact, a cryptocurrency exchange committed to digital asset trading, established in 2020. JPEX claims to have obtained financial licenses in the United States, Canada, and Australia, with operations in Hong Kong and Taiwan.

4. CySEC Sends Out Notice to Investment Firms Regarding New CFD Rules in Spain

The Cyprus Securities and Exchange Commission (CySEC) today (October 12) has drawn the attention of the Cyprus Investment Firms (the "CIFs") to the Spanish Securities and Exchange Commission's (CNMV's) Resolution of 11 July 2023 on product intervention measures relating to CFDs and other leveraged products to retail investors in Spain.

The Resolution from CNMV prohibits advertising CFDs and other leveraged instruments to retail investors, along with certain remuneration policies and sales practices. Additionally, it introduces intervention measures regarding the marketing, sale, and distribution of other leveraged instruments to retail customers.

5. Listen to the Article: Follow-up on the Celsius Crisis - The Oct U.S Hearing Update​

Here's the latest update on the Celsius case: At a hearing held on October 2-3 at the U.S. District Court for the Southern District of New York, Judge John Koeltl said that the criminal trial of the former CEO of the crypto platform, Alex Mashinsky, is scheduled for September 2024. Regarding repayment, Celsius also plans to release some of the frozen funds to the victims whose funds are trapped since June 2022.

Celsius was "one of the largest players in the crypto lending space" in Q2 2022, according to CNBC. In June that year, it had 1.7 million clients and offered up to 17% annual yield. It used Prime Trust as its custodian for some assets from March 2020 to June 2021. After the relationship ended, Celsius sued Prime Trust in August 2022 for retaining $17 million of assets.

6. NAGA Improves Performance in Q3 2023, with Revenues Reaching €8.9M

NAGA, a social trading focused FinTech company, witnessed its revenue for the third quarter of 2023 (Q3 2023) rise to €8.9 million from €7.9 million in Q2 2023, up 12.66 percent.

In the prior quarter, the Fintech experienced 32 percent drop in revenue on a monthly basis.

7. FXCM Australia Becomes Stratos Trading​

Fazzaco learned that FXCM Australia, the Australian branch of FXCM, a leading provider of online foreign exchange (FX) trading, CFD trading and related services, has changed its name to Stratos Trading Pty. Ltd.

The rebranding occurred in late September, reflected in the Australian Securities and Investments Commission (ASIC)'s registers.