Fazzaco Weekly Digest: UK's Crackdown Plan on "Finfluencers"; BGC Group Incurs Losses in Q2 2023; FTX to Restart Crypto Exchange
Last week, a number of brokers, fintech firms, and exchanges released their latest monthly or quarterly financial data, including XTB, BGC Group, Monex Group, Tradeweb, Interactive Brokers, Robinhood, Saxo Bank, StoneX, and Intercontinental Exchange (ICE), among others.
In an effort to curb false and inaccurate promotion of financial influencers, the UK FCA has issued a "Social Media Guidance" to update the way online financial products or services are marketed. Fazzaco briefly combed and analyzed the regulator's move.
FTX, which collapsed late last year and triggered a series of failures in the cryptocurrency industry, has made its latest move, proposing to organize its creditors into different classes of claimants, and has provided a pathway for one class of claimants to restart the FTX exchange with third-party investors.
In addition, LedgerEdge, a corporate bond trading platform, has ended its operation just a year after its live launch.
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.
As the internet keeps on marching forward, and as short videos and the rise of "influencers" sprinkle a pinch of chaos into the mix, we witness the birth of the enigmatic "finfluencers." The word is essentially a neologism, and it points at those who've managed to gather an army of followers. What's their mission? Well, it's all about rolling out the red carpet for financial products and services, like a parade of money-savvy cheerleaders. Among these finfluencers, quite a few are marching out the risky investments, including the likes of cryptocurrency, forex, and the thrilling CFDs.
But, the financial playground has always been fertile ground for scams and misinformation, and now we're tossing it all into the online realm where face-to-face accountability takes a backseat. The UK Financial Conduct Authority (FCA) has staged quite a few moves in July, to show they're determined to tighten the leash on social media, finfluencers, and cryptocurrencies.
2. FTX Plans to Restart Crypto Exchange for International Customers
Defunct crypto exchange FTX has proposed to organize its creditors into different classes of claimants, and has provided a pathway for one class of claimants to restart the FTX exchange with third-party investors – should the group agree to it.
The filing, posted Monday night U.S. time, delineates the claimants into various groups. The first group is claimants of FTX.com offshore exchange, which it calls "dotcom customers", next is customers of the U.S. exchange ("U.S. customers"), after, customers of its NFT exchange, then general unsecured claims, secured claims, and subordinated claims. Included in general claims are those from Alameda’s lenders or trading partners, while subordinated claims are taxes and fines from penalties.
3. Capex.com Welcomes Paul Turner as Executive Director, UAE & MENA
Capex.com, the global, multi-asset FinTech provider, is delighted to announce the appointment of Paul Turner as the new Executive Director - UAE & MENA region. With over a decade of experience in the financial services industry, Turner brings a wealth of expertise to lead and enhance Capex.com's operations across the Middle East.
He will be reporting directly to Madalina Rotaru, Senior Executive Officer of Key Way Markets LTD, the company operating CAPEX.com in the MENA region. Turner's primary focus will be on continuing the UAE offices growth momentum, while creating and executing business plans that align with the Group's strategic goals in both established and emerging markets.
4. ASIC Flags Money Recovery Scam Using Fake Documents to Impersonate It
The Australian Securities and Investments Commission (ASIC) today issued a warning against the operators of www.payback-recovery.com, who claim that they are a money recovery service helping victims of online fraud or scams get their money back.
The Australian watchdog noted that it has received reports from local consumers who have paid upfront fees but did not receive any refund or recovered money.
5. BGC Group Incurs Losses in Q2 2023 in Spite of Growth in Revenues
BGC Group, Inc. (BGC), a leading global brokerage and financial technology company, has published financial results for the second quarter of 2023, unveiling losses despite increase in revenues during the period.
The company has generated revenues of $493.1 million for the quarter, rising 13.2% from $435.8 million in Q2 2022. Brokerage business brought $443.6 million revenues, 11.5% higher over the last same period.
6. Corporate Bond Trading Platform LedgerEdge Goes Under
Corporate bond trading platform LedgerEdge has gone into administration just a year after its live launch.
David Baxendale and Edward Macnamara of PwC have been appointed as joint administrators of the company.
7. AUS Global and Trend Group Foster a Strategic Partnership
AUS Global, a prominent international online brokerage company, and Trend Group, a leading organization specializing in economic consulting and CFD trading, are thrilled to announce their strategic partnership, aimed at empowering Emirati entrepreneurs and facilitating global market access for Gulf talents.
The partnership between AUS Global and Trend Group marks a significant milestone in empowering entrepreneurs in the UAE. Both companies share a common vision of unlocking the true potential of local talents and enabling them to compete on the global stage. By combining their strengths and resources, they aim to create a conducive environment for business development and investment.
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