Demo Account Prop Trading Platforms Do Not Need Authorisation: Czech Regulator

Starting our weekly news roundup, demo account prop trading services without real-market executions and subsequent settlements cannot be categorized as investment services under existing regulations, the Czech National Bank (CNB) recently clarified in a Q&A published on its website.

The clarification came months after the Czech regulator exclusively told Finance Magnates that some prop trading business models “may be subject to the MiFID regulatory framework.” With the recent clarification, it can be assumed that the CNB is differentiating between the two prop trading models: demo accounts and real accounts.

Prop Trading and CFD Brokers

RegTech firm Muinmos and technology provider Brokeree Solutions announced a partnership focused on proprietary trading compliance and risk management for regulated brokers. This move came amid ongoing discussions about the legitimacy and regulation of prop trading in the financial industry.

The collaboration integrates Brokeree's Prop Pulse technology for account management and risk mitigation with Muinmos' client onboarding platform. This combination is intended to offer FX brokers tools for regulatory compliance and risk control in prop trading operations.

Centroid Integrates Scope Prime’s Liquidity Pools Through API Connection

Scope Prime, Rostro Financial Group's institutional liquidity brand, announced its integration with Centroid Solutions’ platform via Centroid Bridge. This integration allows Centroid’s clients to access a wide range of deep liquidity pools offered by Scope Prime.

The move aims to update liquidity management, enhance operational efficiency, and improve connectivity across the platform. “We understand the importance of always having best-in-class market connectivity in place across all assets,” commented Daniel Lawrance, Chief Executive Officer at Scope Prime.

DXtrade Partners with Finalto

DXtrade, Devexperts' flagship trading platform, collaborated with Finalto. This partnership aims to enhance liquidity provider services for brokers using the DXtrade platform. Finalto, known for its liquidity aggregation and risk management solutions, will integrate its services with DXtrade's trading ecosystem.

This move is expected to give brokers access to Finalto's liquidity pools, which are designed to connect market demand with supply across over 3,000 instruments in multiple asset classes. Finalto recently introduced the Finalto Broker Handbook, a guide designed to help brokers build and sustain thriving retail brokerage businesses.

LMAX Group Enters FX Swaps with FX HedgePool Acquisition

LMAX Group, which offers institutional execution venues for FX and digital assets trading, acquired FX HedgePool, an institutional swaps matching service, thus further expanding its offerings in the sector. However, the financial details of the acquisition remain unknown.

The latest acquisition comes 12 months after LMAX bought the FX business of Cürex, a New York-based company specializing in institutional foreign exchange execution services and data analytics. FX HedgePool has expertise in the FX swaps and forwards market. Its network of buy- and sell-side relationships complements LMAX's existing institutional client base in its FX business.

Ebury Starts Offering Payments Services to FX and CFDs Brokers

Ebury, a Santander-owned payments company, expanded its scope of clientele and has been onboarding forex and contracts for difference (CFD) brokers, Finance Magnates learned from an industry source in Cyprus.

The payments giant officially started to onboard FX and CFDs brokers in December 2023. It currently has more than 20 brokers on its platform, with over a dozen being active. Interestingly, Ebury only recently began pitching its services to FX and CFDs brokers and did not actively target the ones already onboarded.

Saxo Expands Offerings for “Buy-and-Hold Investors”

The UK unit of Denmark-headquartered Saxo Bank launched SaxoInvestor, an investment platform targeted at “buy-and-hold and active investors” in the country. According to the official press release, the new platform offers access to more than 70,000 instruments, including stocks, ETFs, bonds, and mutual funds.

“With this new user-friendly platform, SaxoInvestor delivers top-tier insights and diverse investment themes, levelling the playing field for investors of all backgrounds,” said Andrew Bresler, CEO of Saxo UK.

Saxo Closes Hong Kong and Shanghai Offices

Saxo Bank A/S, a Denmark-based trading platform, is closing its office in Hong Kong. The company cited changes in the business environment as the reason. In a statement this week, Saxo described the decision as “difficult but necessary.” It has confirmed that it has stopped accepting new clients and that its main focus is managing the “smooth offboarding process” for affected clients and partners.