Brokers Reshape Operations via Acquisitions and Client Book Sales as Oversight Tightens
Global retail trading brokerages are restructuring operations through acquisitions, client transfers, and geographical expansion. FxPro agreed to sell its Cyprus-based European client book to Capital.com pending regulatory approval, while CXM Group agreed to buy South African broker TD Markets. Meanwhile, Plus500 agreed to acquire US broker-dealer Hedge Capital Markets to support its planned 2027 super-app rollout.
These strategic moves coincide with shifting market share and heightened regulatory scrutiny. Data from European regulators reveals that contracts for difference dropped from 11% to 6.7% of cross-border retail holdings, trailing shares, funds, and crypto assets. Simultaneously, the Australian Securities and Investments Commission proposed extending product intervention restrictions on contracts for difference for an additional decade through 2037.
Going forward, market participants should follow regulatory decisions on pending brokerage deals, including approval from the Cyprus Securities and Exchange Commission and US regulators. In addition, digital asset platforms in Australia face a November 27 deadline to submit feedback on upcoming licensing and custody rules set to take effect in 2027.
Key points
- FxPro agreed to transfer its Cyprus entity's client book to Capital.com subject to regulatory sign-off.
- Plus500 conditionally agreed to acquire US broker-dealer Hedge Capital Markets to launch a US trading app in 2027.
- ASIC proposed extending Australian CFD product intervention restrictions until 2037.
- European regulatory data showed CFDs' market share among cross-border retail product holdings fell to 6.7%.
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How we writeDisclaimerQuestions and answers
What client transfer deal did FxPro agree to with Capital.com?
FxPro agreed to transfer the client book held under its Cyprus entity to Capital.com, subject to approval from the Cyprus Securities and Exchange Commission. FxPro stated its leadership, UK headquarters, and Financial Conduct Authority licence remain unchanged.
Why is ASIC proposing to extend CFD trading restrictions in Australia?
ASIC proposed extending its CFD product intervention order for another decade until 2037 to maintain investor protections. The draft includes updated rules on margin requirements, record-keeping, and settling arrangements.
How is Plus500 expanding its operations in the United States?
Plus500 agreed to acquire SEC-registered broker-dealer Hedge Capital Markets using existing cash reserves. The deal supports Plus500's plans to launch a US super-app covering futures, equities, options, and prediction markets in early 2027.