Australian online trading platform AxiCorp has agreed to acquire One Financial Markets (OFM) to expand its footprint in Asia, the Middle East and the UK.
Subject to regulatory approvals, the combined operation is expected to deliver an estimated $2 trillion in annual trading volume for AxiCorp.
The Sydney-based company will buy OFM, a UK-based online broker, in a predominantly cash-based deal which took about 12 months to finalise.
Under the terms of the agreement, AxiCorp will gain control of all the staffs, operations and licences of OFM, including its entities in Hong Kong and Dubai.
OFM provides trading facilities to retail and institutional investors in forex and contracts-for-difference indices, commodities, bonds and futures.
The agreement will also see majority shareholder and founder, Khalifa Butti Bin Omeir, the chairman of Abu Dhabi’s diversified investment group KBBO Group, take an equity stake in AxiCorp.
AxiCorp’s online trading platform currently delivers trading volumes of AUD 1.5 trillion ($1 trillion) through 30,000 trading accounts of retail and high-net-worth individuals.
While the Australian business represents 27% of group revenue, the platform has international operations in Southeast Asia, China, the Middle East, Africa and South America.
The firm has been expanding its global footprint under CEO Rajesh Yohannan, who took the helm two years ago and is on the lookout for other acquisition opportunities.
‘With new regulations coming into force this year, we believe consolidation will remain a key theme and expect to have the opportunity to make further strategic acquisition in due course,’ Yohannan said.
The global forex and CFD industry is preparing for further consolidation as regulators increase their oversight.
The European Securities and Markets Authority, for instance, introduced new rules this year to sharply lower leverage on major currency pairs and outlaw binary options.