Key Insights
- FTMO Acquires OANDA: CVC Asia Fund IV has agreed to sell OANDA Global Corporation to FTMO Group, pending regulatory approval, as prop trading firms seek regulatory compliance.
- FTMO will retain OANDA as a standalone business, leveraging its regulatory expertise and risk management skills to expand into brokerage services, supported by recent key leadership hires.
LONDON (MarketsXplora) – Private equity firm CVC Asia Fund IV has agreed to sell OANDA Global Corporation to prop trading leader FTMO Group, marking a significant development in the evolving proprietary trading industry. The transaction, subject to regulatory approval, underscores a growing trend among firms seeking established multi-asset trading brands to navigate compliance challenges. Financial terms of the deal were not disclosed.
FTMO Moves into Brokerage with OANDA Acquisition
Industry analysts view the acquisition as a strategic move, reflecting the shifting landscape of the prop trading space amid tightening regulatory oversight. OANDA, a digital trading platform catering to retail and corporate clients, was founded in 1996 and operates across major financial centers, including New York, London, and Tokyo. The firm offers multi-asset trading, currency data, and analytics services.
“The team has taken OANDA from a regional foreign exchange provider to a fully diversified offering whilst building upon its historic strengths in regulatory compliance and best-in-class customer support. We would like to thank the entire team at OANDA for their efforts,” said Siddharth Patel, Managing Partner at CVC.
CVC Partners Asia Fund initially acquired a 98.5% stake in OANDA in 2018 for $160 million, valuing the broker at $175 million based on the prior year’s $35 million EBITDA. Under CVC’s ownership, OANDA introduced new trading products, established a back-end office in Poland, and developed a mobile trading platform. The remaining 1.5% equity in OANDA was classified as management profit interest.
OANDA Adjusts Prop Trading Program
OANDA has actively adapted to recent changes in the prop trading sector. Six months after launching its proprietary trading offering, the firm updated the conditions of its trading challenges last October to attract experienced traders. The modifications introduced more flexible assessment criteria and increased profit-sharing opportunities. Successful traders can now unlock an 80% profit share as signal providers, significantly enhancing the attractiveness of the program.
Forex market expert Kathy Lien described OANDA’s adjustments as forward-thinking.
“It’s a smart way to get ahead of a lot of things that could be coming for the prop trading industry, most important of which could be a regulatory environment that is changing. Regulators all around the world are taking a closer look at the prop firms, and they are definitely going to be looking at more regulations and more rules in the coming months and maybe even years,” she noted.
FTMO Gains Regulatory Expertise
The acquisition also positions FTMO favorably in terms of regulatory preparedness.
“These new compliance rules could be coming soon. By acquiring OANDA, FTMO basically gains access to a team that knows how to navigate a lot of these challenges in regulation and getting licenses. It is like having a seasoned guide in one of the trickiest markets in the world,” Lien added.
FTMO, headquartered in the Czech Republic, provides educational and training services for traders. The firm has announced that it will retain OANDA as a standalone business.
“We are delighted to welcome OANDA’s existing management team, whose track record in complex, regulated markets, strong expertise in risk management, and customer-centric philosophy fully complements FTMO’s own vision and strategy,” said Otakar Šuffner, FTMO’s co-founder and CEO, and Marek Vašíček, FTMO’s co-founder and CTO.
“We look forward to building together a unique, comprehensive trading powerhouse group of companies that has not existed in the market until now,” they added.
Strategic Advisory and Leadership Changes
CVC was advised by Nomura and Santander on the transaction, with legal support from Milbank (Hong Kong) LLP. FTMO received financial advisory services from J.P. Morgan, while Latham & Watkins LLP provided legal counsel.
Meanwhile, FTMO has confirmed the appointment of Riana Chaili as Chief Operating Officer of its brokerage division. This follows the earlier appointment of Michael Kamerman as CEO, signaling FTMO’s strategic intent to expand its brokerage operations.
With recent key hires, FTMO appears poised to launch its brokerage services as part of its broader long-term strategy. Despite its expansion efforts, the company maintains its dominance in the prop trading sector, reporting a turnover of over $213 million in 2023, reflecting a 20% year-over-year increase.