Marex in talks to buy OTCex Group’s voice brokerage activities

abdelaziz Fathi

London-headquartered commodities broker Marex is understood to be in advanced stages of negotiations for acquiring OTCex Group’s voice brokerage activities.

The exclusive discussions concern the proposed sale of the brokerage business mostly carried out through investment firms : HPC, OTCex Hong Kong, and OTCex LLC.

Headquartered in Paris, OTCex voice brokerage services include businesses based in London, Dubai, Hong Kong, New York, Paris, Milan, Tel-Aviv and Lisbon, and employs approximately 200 staff worldwide.

Both OTCex and HPC brands operate as French financial companies authorized by Autorité de Contrôle Prudentiel et de Résolution, as well as by Autorité des Marchés Financiers. HPC also has the authorization to operate as an Organized Trading Facility (OTF).

Marex said the deal represents a superb opportunity of corporate backing and consolidation with a worldwide growing leading player. It should therefore pave the way for future ambitious business development steps by benefiting from access to Marex’s global infrastructure and balance sheet.

The close of these transactions is subject to consultations currently underway with OTCex Group’s employees’ representative bodies. Full and definitive completion would thereafter be subject to prior approval by all relevant regulators.

OTCex Group is the product of two mergers. The first was in 2005 between Paresco, a French investment firm broking listed equity and interest rates products and HPC, a European broker operating mainly in money and interest-rate markets. This entity then merged in 2006 with OTCex, an inter-dealer broker specializing in index and single stock options.

These mergers have brought OTCex Group a client base of over 600 institutions, including banks, asset managers, fund managers, hedge funds and market makers. Since its foundation, OTCex Group’s strategic focus has always been to create a multi-product brokerage service on an international scale.

From March 2021 Marex Spectron has shorted its name to Marex. The Marex Spectron name dates back to 2011, when Marex acquired Spectron, the OTC energy broker. Since then, the business has vastly increased in scale, scope and headcount, with multiple new offerings and business lines.

This change, however, had no bearing on the company’s legal registered entities which remain unchanged. Subsidiary companies also retain their existing brand names, whilst the Spectron brand continues within the energy brokerage division.

‎Revenues in the commodities broking sector were in general squeezed since the 2008 global ‎crisis due to harsh regulations and the overall shift to electronic trading, leading some to ‎questions about the future of the industry.‎

  • Read this next

    Crypto Insider

    Saudi Launches World’s First Cultural Metaverse

    The Saudi Ministry of Culture, droppGroup, and Oracle have joined forces to launch the Cultural Universe, the world’s first government-operated national Metaverse initiative.

    Retail FX

    eToro revives IPO plans after failed $10B SPAC merger

    Israeli social trading network eToro is actively exploring options for a public market listing, according to CEO Yoni Assia in an exclusive interview with CNBC.

    Digital Assets

    Meme Coin Communities Gear Up for the CoinMarketCap Crypto Awards

    CoinMarketCap’s Crypto Awards 2024, the first edition of a new annual event, is captivating the global crypto community. This is especially true for the Meme Coin Of The Year category, where voting has become a battleground for the most passionate and vibrant communities in the crypto space.

    Digital Assets

    Sui Recognized as 2024 Blockchain Solution of the Year at AIBC Eurasia Awards

    The Layer-1 Received the Top Honor at the Eurasia Awards While Experiencing a Period of Unprecedented Growth and Recognition

    Crypto Insider

    Vitalik Buterin, Sandeep Nailwal Lead Decentralized AGI Summit, Address Centralized AI Risks at ETHDenver

    Sentient and Symbolic Capital’s Decentralized AGI Summit will feature leading Decentralized AI authorities like Vitalik Buterin and Sandeep Nailwal.

    Digital Assets

    Aethir Unveils Its First Decentralized AI Node Sale

    Aethir, a leader in decentralized GPU cloud infrastructure, has announced its highly anticipated Node Sale.

    Market News

    Weekly data: Oil and Gold. How they might be affected in the short term?

    This preview of weekly data looks at USOIL and XAUUSD where economic data coming up later this week are the main market drivers for the near short-term outlook.

    Digital Assets

    BitForex goes offline after mysterious $57 million withdrawal

    BitForex, the Hong Kong-based cryptocurrency exchange, abruptly went offline following a mysterious withdrawal of $57 million from its hot wallets. Blockchain detective ZachXBT was among the first to spotlight this, revealing that BitForex has ceased withdrawal transactions and its team appears to be unresponsive.

    Digital Assets

    Should the largest Bitcoin trade be priced in BTC or USD?

    Three days ago, the Bitcoin network witnessed a staggering transaction of 26,139 BTC, valued at $1.347 billion. This recent transaction contrasts sharply with a notable event from 2011, where 500,000 BTC were moved, then valued at around $1.13 million.