European financial regulatory oversight body ESMA had a fairly busy week, certainly as far as the FX and CFDs industry was concerned, issuing separate missives regarding Fractional Share CFDs, and also Copy Trading.
The past week also saw what might be the end of Nextmarkets, which not too long ago was one of the more promising neobrokers in Europe. However a crowded market and tough conditions recently have led to a decision to liquidate Nextmarkets, as was exclusively reported late in the week here at FNG.
Some of the most read and commented-on FX industry news stories to appear over the past seven days on FNG included:
Exclusive: Neobroker Nextmarkets to liquidate. FNG Exclusive… FNG has learned via regulatory filings that Cologne, Germany based neobroker Nextmarkets is being liquidated. Nextmarkets’ two largest outside shareholders, fintech investment firm FinLab (with a 34.36% holding in Nextmarkets AG) and crypto tech investor Samara Asset Group (with 37.68%) each issued regulatory filings in Germany indicating that the Management Board of Nextmarkets has decided, with the approval of the Supervisory Board, to sell all subsidiaries, respectively their assets as well as further assets of Nextmarkets.
ESMA issues statement on fractional shares. The European Securities and Markets Authority (ESMA) today issued a statement regarding derivatives on fractional shares. The active marketing and sale of so-called ‘fractional shares’ by firms to retail clients is a relatively new phenomenon that has gained momentum in the context of on-line trading platforms and neo-brokers. ‘Fractional shares’ allow investors to participate in the share performance of an issuer by way of an instrument that tracks the share price but is available at a smaller purchase price, namely the pro rata share price of the underlying share.
ESMA provides guidance for supervision of Copy Trading. Pan European financial regulatory oversight body European Securities and Markets Authority (ESMA) has published a supervisory briefing on firms offering copy trading services, in accordance with its objective of fostering investor protection and actively promoting supervisory convergence across the EU. Copy trading refers to a service that involves trading of a client’s assets based on the trades of another trader (hence adding a social element), whom ESMA refers to as the ‘copied trader’ (also identified as the ‘signal provider’).
Axi renews multi-year partnership with Manchester City. Online FX and CFD trading company Axi has announced an extension of its flagship partnership with Manchester City Football Club. Axi has been the Official Online Trading Partner of the leading English football club since 2020, during which time the topflight men’s team has amassed great success on the field, winning back-to-back Premier League titles during the 2020/21 and 2021/22 seasons, plus the League and League Cup double in 2020/21.
Top FX industry executive moves reported at FNG this week included:
❑ Scope Markets hires Antonia Droussiotou from Skilling, Joshua Mahony from IG.
❑ Joe Rundle joins Intertrader as CEO.
❑ Capital.com hires Simone Manni as Head of Marketing for Europe.
❑ Exclusive: Zenfinex hires Equiti exec Amer Zino as Head of Sales MENA.
❑ Exclusive: Exness promotes Alina Kamalova to Head of Marketing Strategy & Transformation.
