Aussie brokerage group ACY Securities has acquired the South African license of rival firm INGOT Brokers.
ACY said in a statement that the acquisition was part of its global expansion plans and that the firm will seek to attract clients to its own trading platform.
“Securing the deal in South Africa is a pivotal step in our global expansion journey,” said ACY CEO Jimmy Ye.
“This acquisition allows us to bring LogixTrader, our innovative trading platform, to a broader audience, enhancing the trading experience for clients in this dynamic market. Our focus on robust regulatory compliance ensures traders can operate with confidence, knowing they are protected by one of the world’s respected financial regulators.”
South Africa has made several changes to regulations over the last few years that may have been behind INGOT Brokers’ decision to sell.
Firstly, companies offering CFDs must have an over-the-counter derivatives provider (‘ODP’) license. This is much more cumbersome to acquire and maintain than the other licenses you can get from the regulator.
Another factor was a recent decision to regulate the activities of financial influencers, making it harder to form introducing broker agreements with partners in the country.
INGOT Brokers already has a license in Kenya, which allows it to offer CFDs, which it can presumably use to target the wider Africa region. The license that it sold to ACY Securities is a Category I license, meaning the holder needs further permissions to offer CFDs, even if they want to offer them on a matched-principle basis.