CXM Group to Acquire South Africa’s TD Markets
Multi-asset broker CXM Group has agreed to acquire Johannesburg-based TD Markets, giving it its first FSCA-regulated entity in South Africa. Financial terms were not disclosed.
CXM Group, a multi-asset contracts-for-difference broker, has agreed to acquire Johannesburg-based TD Markets, according to a report by Finance Magnates. The transaction would give CXM a regulated South African entity for the first time. No purchase price was disclosed, and the report did not state whether the deal has already completed.
CXM currently holds licences in the Seychelles, Mauritius, the United Arab Emirates and Cambodia, but has no supervised subsidiary in South Africa. TD Markets, founded in 2015, brings more than 50,000 active clients to the combination. The company will retain its brand, its leadership team, its licence from the Financial Sector Conduct Authority (FSCA), its local client accounts and its existing agreements with introducing brokers and partners.
Amar Ramith, chief executive of TD Markets, will stay in the role. He was quoted as saying the priority throughout the process was securing the right long-term partner for the firm's clients and staff.
Expansion base for Africa
For CXM, Johannesburg is intended to serve as a hub for growth across the continent. Once the acquisition closes, the group plans to roll out 24/7 gold trading, the TradingView charting platform, its own liquidity and execution stack, and an international partnership programme.
"We are not here to change what clients value," CXM Group chief marketing officer Andrei Alekseev was quoted as saying. "We are here to invest in it: in liquidity, in technology and in people on the ground in Johannesburg."
The report did not identify which legal entity CXM is buying. TD Markets' website lists TD Markets (Pty) Ltd as a financial services provider under FSP number 49128, while its disclaimer states that client trades are executed with TDM Holdings LLC as principal. It is not known whether that entity forms part of the transaction.
The deal adds to a run of acquisitions of FSCA-licensed businesses. ACY Securities has purchased Ingot Brokers South Africa, and Mitrade has made a comparable move. Finance Magnates linked the trend to the cost of obtaining an over-the-counter derivative provider (ODP) licence from scratch.
Source: LeapRate