TradeInformer understands that brokerage group CMC Markets is in the process of acquiring a license from the Bermuda Monetary Authority.
The company had appointed Benjamin Charbonneau as its Head of Bermuda earlier this year. He is now the group’s Head of North America but appears to still be based in Hamilton, the capital of Bermuda.
Despite offering a number of attractive features, Bermuda is not currently a popular license for providers in the CFD industry.
IG Group appears to be the only other company in the industry with a license in the British overseas territory. The company also has a license to offer crypto trading from the territory.
Licenses in offshore financial jurisdictions have become much more popular since the introduction of marketing and leverage restrictions in Europe and the UK in 2018. For example, there are now over 100 providers registered in the Seychelles.
For larger providers they typically offer an avenue to offer more attractive terms to clients who come to them via reverse solicitation.
However, the popularity of offshore licenses means there is now a growing divide between these jurisdictions, with larger players likely trying to acquire licenses that mean they are not bunched together with lots of other providers.
For example, the Bahamas was a popular place to go for more established players but a huge increase in cost, regulatory burden, and other restrictions means it has become much less attractive than it once was.
