Abstract:IG’s shareholdings in both companies are approximately $216 million.
London-headquartered IG Group Holdings (LON: IGG) announced on Wednesday that it is selling its stakes in two subsidiary trading platforms, North American Derivatives Exchange (Nadex) and Small Exchange, to Foris DAX Markets, which operates as Crypto.com.
IG is the owner of Nadex but holds approximately 39 percent stakes in Small Exchange. The combined price of IGs shareholdings in both companies is estimated to be $216 million, and the transaction will be made all in cash.
Though the deal has to satisfy customary conditions, including regulatory review, the two companies are expecting to close it by the first half of 2022.
“Were really excited by this deal, as it delivers a significant return on the previous investments made in Nadex and Small Exchange and enables additional investment across all our businesses,” IG Group CEO, June Felix, said in a statement.
“This deal also allows us to further sharpen our focus on integrating and expanding the US options and futures business through our tastytrade and tastyworks franchises, both in the US and internationally, where we see significant room for growth.”
Nadex is one of the very few regulated US platforms that offer binary options, while Small Exchange is a relatively new US futures exchange operating since June 2020.
The announcement has further detailed that the expected transaction will neither materially impact full-year adjusted operating profit expectations nor medium-term revenue growth guidance.
Meanwhile, Crypto.com is expecting to expand offerings to its US customers with the acquisition of the two exchanges.
“Our goal as a platform is to offer our customers a trusted, secure, and regulated platform with world-class tools to achieve financial independence,” said Kris Marszalek, co-founder and CEO of Crypto.com. “This proposed acquisition builds on that promise and will give our customers access to an entirely new set of financial tools to complement our current offering.”
The rewarded Partner Program allows you to get up to 60% revenue share by attracting new clients to MTrading
Etiq Markets is an international brokerage company running operations across most of the South Asian countries including China, Singapore, Malaysia, Thailand, Indonesia, Vietnam and others.
MFM Securities is an offshore broker that, despite its status, is quite decent looking. However, brokers should focus on trading conditions, and not on looks. The leverage is maxed at 1:500, a common offshore broker value, while the EUR/USD spread was 2.1 pips on the demo platform. Such a spread is not really very lucrative for traders.
Veonco is a forex and CFD broker who doesn’t disclose much details about the entity behind the operation. This, of course is a major issue, as well as the fact that this brokerage doesn’t hold a lgit forex license. So, if you are tempted by the seemingly attractive offer of Veonco, be sure to read the following lines first.