London-based, but Swiss-owned margin trading house ETX Capital is spreading its wings overseas, having secured a licence from South Africa’s Financial Sector Conduct Authority or FSCA.
South Africa is the CFD trading platform’s first major venture outside of the UK. although it does have a Cypriot operation.
Under the ownership of Swiss-based PE house Guru Capital it was always likely that the forex brokers product mix and geographic coverage would grow.
ETX Capital is thought to have its eye on expansion in Europe as well
Ryan Nettles, who is one of Guru Capitals’ managing partners and an ETX Capital board member, has plenty of experience in the European brokerage arena. Having been at Swiss Quote for just over 9 years. Much of which was spent as a director and head of FX trading and market strategy.
A gateway to the wider continent
Following the award of the licence, ETX Capital is now fully authorised to operate in South Africa which is the continents largest and most developed financial services market, and a potential gateway to other developing markets within Africa, such as Kenya and Nigeria and resource-rich economies such as Botswana and Angola.
South Africa is already home to some of ETX Capitals competitors, not all of whom are having an easy ride.
For example, IG Markets is in dispute with the FSCA over the permissions that its licence affords it, with the regulator maintaining that IG can offer execution-only services in the country, but that the products it offers, CFDs and FX, are not regulated and that IG is not currently authorised to issue, sell or make a market in OTC derivatives.
IG is taking the FCSA to its own tribunal to resolve the dispute.
ETX Capital meanwhile is keen to launch its new business and CMO Nandik Barbhaiya was quoted as saying:
“Achieving this important milestone is paramount to our expansion plans and is yet another feather in the ETX cap”
“We are committed to strengthening our relationship with traders in the region and in upcoming weeks we will be working behind the scenes to welcome our South African clients onto our new license”
Turbulent times can create trading opportunities
South African stock markets have had a good run in 2021 thus far, with the JSE 40 index of the most tradable issues up +12.10% year to date. The Rand had been holding its FX markets against the US dollar, although it has weakened in the last 24 hours as civil unrest broke out across the country, following the imprisonment of former President Jacob Zuma.
Turbulent times can create trading opportunities of course, and it will be interesting to see how much traction ETXs new operations can get against this current political backdrop.
Darren is a veteran of the financial markets with almost 36 years of experience under his belt. He has worked in trading, sales, analytical, and research roles, he has been a regular guest & commentator on financial television channels and publications. During his career, Darren has been fortunate to act for and advise major hedge funds and investment banks as well as HNWI. Darren analyses the markets using a blend of technical and fundamental analysis