Mar 18 2010

CMS Forex is rumored to have been acquired

It’s no wonder that following the latest CFTC regulatory blitz the US industry is consolidating and the market is getting smaller and more centralized – which in my opinion is essentially bad for the small retail trader. Actually that is something that I believed would happen, however the scale of what is happening right now beneath the surface caught even me by surprise.

What I’m hearing from several knowledgeable and unrelated sources is that CMS Forex was just acquired. CMS Forex is a pretty known and established US broker operating out of New York. Its volumes and revenues figures aren’t really known, as I pointed out in my latest volume survey CMS doesn’t disclose its volume, but my understanding is that during 2009 CMS Forex’s profits significantly decreased. CMS Forex’s strength in my opinion lies with its institutional clients rather than its retail forex business and perhaps the institutional part wasn’t the one to suffer from decreasing volumes.

From what I’m hearing, CMS Forex was bought by either Gain Capital (Forex.com) or IG Markets with the latter being the most likely buyer. If it is IG indeed this makes it really interesting because I would expect a US broker to buy a US broker and not a foreign entity. IG is regulated in the US and is even registered as an FCM with the NFA and while most of the brokers make themselves out of the US (by opening foreign subsidiaries) IG seems to take the opposite direction. On the other hand, CMS just recently opened a UK subsidiary so perhaps this was the reason for IG’s decision.  I do however really like CMS’s technology which could have rivaled other platforms in the market but I guess no platform can really rival Metaquotes no matter how good it is, and perhaps the technology was another motive for the acquisition. Until today I couldn’t receive an official response from CMS.

Whichever is the case, this is certainly a very interesting development and from what I hear is not the only one and bigger news are soon to follow! Stay tuned for more updates.

1 Comments on this post

Trackbacks

  1. pro said:

    They received offers, but took none. CMS is going to be around

    March 19th, 2010 at 2:35 pm


Note: Copyright © 2009 Forex Magnates. All rights reserved.
All materials contained on this site are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of Forex Magnates. You may not alter or remove any trademark, copyright or other notice from copies of the content.
All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you.Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at Forex Magnates are those of the individual authors and do not necessarily represent the opinion of Forex Magnates or its management. Forex Magnates has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.
Any opinions, news, research, analyses, prices or other information contained on this website, by Forex Magnates, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. Forex Magnates will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
©2009 "Forex Magnates Inc. - Home of the Forex Elite" All Rights Reserved.