Plans to Operate It as a Standalone Business

Amid strict regulations in the prop trading space, firms are turning to well-established multi-asset trading brands to ensure compliance. CVC Asia Fund IV has agreed to sell OANDA Global Corporation
to FTMO Group. The deal is subject to regulatory approvals, and the financial terms
were not disclosed.

Industry experts view this as a sign of broader developments ahead as the emerging prop trading space continues to evolve. OANDA, founded in 1996, provides a digital trading platform
for retail and corporate clients. It offers multi-asset trading, currency data,
and analytics. The company operates in major financial hubs, including New
York, London, and Tokyo.

“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,” Siddharth
Patel, Managing Partner at CVC, said.

In 2018,
CVC Partners Asia Fund acquired a 98.5% stake in OANDA for $160 million,
valuing the broker at $175 million based on the previous year’s $35 million
EBITA. Since then, OANDA has expanded under CVC’s ownership, introducing new
products, establishing a back-end office in Poland, and developing a mobile
trading platform. The remaining 1.5% equity was classified as management profit
interest.

OANDA Updates Prop Trading Program Conditions

In October of last year, Finance Magnates reported that
OANDA, six
months after launching its prop trading offering, had updated the
conditions for its trading challenges to appeal to experienced traders,
especially in response to recent developments in the prop firm sector.

The
updated program now includes more flexible assessment criteria and higher
profit-sharing opportunities. Traders who successfully complete a challenge can
unlock an 80% profit share as signal providers, a significant increase from
previous levels.

Forex industry expert Kathy Lien described the move as
smart. “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.”

“And 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, and you know one of the trickiest markets in the
world.

FTMO Welcomes OANDA’s Management

Beyond regulatory considerations, FTMO could also gain from OANDA’s decades of expertise in risk management. “We are delighted to welcome OANDA’s existing management
team, whose track record in complex, regulated markets, strong expertise in
risk management
Risk Management

One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class,

One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class,
Read this Term, and customer-centric philosophy fully complements FTMO’s own
vision and strategy,” Otakar Šuffner,
FTMO’s co-founder and CEO,
and Marek Vašíček, FTMO’s co-founder and
CTO, commented.