TradeStation Acquire Interbank FX
I've just received an email which says it's from "Todd Crosland, President, IBFX Australia Pty. Ltd.". The email starts off by saying that:
As you may have already seen in the recently issued press release, IBFX Holdings, LLC has been acquired by TradeStation Group, Inc., a recognized leader in online trading and winner of Barron's 2011 "Best Online Broker" award. TradeStation is part of Monex Group, a leading Japanese online brokerage firm.
According to the TradeStation press release that Todd mentioned in his email:
Under the terms of the acquisition, which has been unanimously approved by the Boards of both companies, TradeStation Technologies, Inc., a wholly-owned subsidiary of TSG, acquired from Interbank FX, LLC, a Utah corporation and one of the wholly-owned operating subsidiaries of IBFX, the proprietary risk-management software of Interbank FX, LLC, and immediately thereafter TSG acquired all of the ownership interests of IBFX from its members. Within the next 30 days, Interbank FX, LLC (the primary Forex operating company of the IBFX group) will be merged into TradeStation Forex, Inc., a Retail Foreign Exchange Dealer registered with the Commodity Futures Trading Commission and a member of the National Futures Association, and, as a result, all of Interbank FX, LLC's accounts will be transferred to TradeStation Forex and it will be operated as the "IBFX Division" of TradeStation Forex. IBFX Australia Pty. Ltd. ("IBFXAU"), an Australian company regulated as a member of the Australia Securities and Investments Commission ("ASIC"), will also operate as a subsidiary of TSG.
It seems like recent speculation that Interbank FX was about to be sold was at least half right! Going back to Todd's email, he reassures IBFX Australia customers such as myself that:
You will naturally have some questions about how this announcement will affect you. We do not expect there will be any material changes to our products, services, management, spreads, fees, operations, systems or methods of doing business. In fact, we believe the acquisition will directly benefit every IBFX customer by combining our innovative approach to the FX industry with TradeStation's cutting-edge forex trading technology and support services.
So that's all OK then, and everbody's happy? As TradeStation put it:
This is a win-win for IBFX and TradeStation clients and makes TradeStation a global leader in forex trading, dramatically expanding our customer relationships and creating a global operating presence. IBFX's proprietary forex tools and services and its focus on customer care will now be backed by the financial stability and trading technology leadership of TradeStation. In time, TradeStation forex clients will benefit from technology offered by IBFX using TradeStation's award-winning, market analysis and trading platform.
A win-win situation for everyone concerned then, apart possibly from those investors in IBFX who for some reason aren't mentioned in any of the above announcements about win-win situations, but are mentioned in a document translated from the original Japanese on the website of the Monex Group, who themselves acquired TradeStation Group earlier this year?
Those investors would seem to be "Todd B. Crosland & Family (59%) and Spectrum Private Equity Fund (40%)". I wonder what they make of all this continued consolidation in global FX?
Filed under Brokers by