AxiCorp, an Australian-owned foreign exchange (forex) and contracts for difference (CFD) trading provider, announced this Thursday that after more than 12 months of talks, it would acquire Star Financial Systems.
Star Financial Systems is a trading technology company headquartered in the United Kingdom. Under the agreement, which is a cash-based deal, the trading provider will acquire all the technology, staff, operations, and licenses of Star. The size of the deal and the expected closing date were not disclosed.
However, according to the company’s statement seen by FortuneZ, the Chief Executive Offer of AxiCorp, Rajesh Yohannan, highlighted that the transaction isn’t necessarily going to be a radical change for the company.
“We view this as a partnership, not an acquisition,” Yohannan said in the statement. “Star has built an enviable reputation and loyal clientele by doing things its own way, under its own direction, and we’re not concerned with trying to change that. What AxiCorp can and will do is add greater liquidity and risk management to the already excellent trading platform APIs and back-office infrastructure.”
Appeal of ASIC ASF license suspension
Amidst its stream of acquisitions, AxiCorp has been having trouble with financial regulators. As FortuneZ reported, the trading provider appealed the ASIC suspension of its Australian Financial Services (AFS) license.
In a statement provided to FortuneZ, AxiCorp said: “We strongly believe that the issues raised by ASIC are generally historical, in many cases self-reported and do not deserve a suspension, which is why we’ve appealed the decision.
“AxiCorp has made significant investment in its Australian compliance function and practices to ensure it is appropriate to meet our obligations with reference to the size and complexity of the business.”
“In fact, we’ve recently commissioned an independent review by a highly experienced and qualified risk management and regulatory compliance expert in relation to ASIC’s concerns. The report (shared with ASIC) made a number of positive observations about AxiCorp’s compliance operations, highlighted some areas that required further work. AxiCorp has completed all of the work required and has taken steps to address the opportunities for further improvement identified by the expert.”