TradeInformer understands that a new, large broker is set to launch next month after ending its affiliation with a shared brand.
Sources familiar with the matter said that a company that has been operating under a brand-sharing agreement with Octa is set to leave the Octa brand and start operating a brokerage under its own name.
Brand sharing is a relatively common practice in which multiple, separate legal entities operate under the same brand name, with each firm independently responsible for specific markets and managing regulatory oversight.
The company then uses the group’s wider set of technology and other resources to reduce overall costs.
The move, assuming it ends up happening, would mark the first new, large-scale entrant to the trading industry over the past couple of years. Although it has been less public-facing than other market players, Octa is one of the largest brokers in the world today.
According to the source, the decision was driven by the firm’s belief that it is now in a position to operate more effectively as a standalone entity, rather than continuing to share the wider Octa brand.
For example, the new company will be able to get its own set of regulatory licenses, engage with clients under its own brand, and simply forge its own path, rather than being tied to a wider brand that it has no real connection to.
It is unclear what will happen to the Octa brand.
As noted, the move would also mean that we have one of the first large, new market entrants into the trading industry over the last few years.
Octa has released no statement about the upcoming changes.
