XGLOBAL Markets acquires 98 Degrees to set up shop in South Africa

abdelaziz Fathi

Cypriot FX broker XGLOBAL Markets has acquired a 45% stake in South African broker 98 Degrees Alternative Risk (Pty) Ltd. The new business has now been rebranded as XGLOBAL Africa to reflect the new ownership structure.

According to information available on South African regulator’s register, 98 Degrees acts as an OTC derivative provider and therefore is permitted, under regular features of its business, to originate, issue, sell or make a market in OTC derivatives.

A Cypriot based company founded in 2012, X Global Markets Ltd is operating under two brands, XGLOBAL Markets and XGLOBAL Investments. The latter is the investment management arm of X Global. Additionally, the company operates XGLOBAL FX Ltd, which is regulated by VFSC (Vanuatu Financial Services Commission), and holds a ‘Dealer in Securities’ license.

The company was originally licensed by CySEC under the brand name FXRidge Ltd, as a forex broker, and also holds a CIF licence.

Forex brokers in South Africa are overseen by the financial sector conduct authority, FSCA, which approves the platforms that can operate within the jurisdiction. The powerful watchdog handles the issuance of licenses and can sanction companies that violate guidelines of the nation’s dual regulation system.

FinanceFeeds webinar: Expert panel to discuss market data for multi-asset brokerages  

XGLOBAL is not alone

XGLOBAL is not the first FX broker to be granted formal permission to operate in South Africa. The country has become a magnet hub for forex companies and executives as many see it as a friendly regulatory environment. In 2021 alone, Pepperstone, Evest, ETX Capital, XTB and Eurotrade have secured their respective licenses in South Africa.

South Africa enjoys a strong and well-organized financial market and therefore has become a popular destination for brokers looking to expand. It is one of the world’s top ten capital markets and boasts thousands of investors. The country itself is a diverse market that is largely devoid of the market saturation seen in other jurisdictions such as Europe.

The country’s resource-rich economy is heavily reliant on financial services and its appeal as a business hub only increases as there are almost no competing financial centers in the south part of the black continent.

Commenting on the news, Samir Dbouk, CEO and major shareholder of XGLOBAL Group, said: “We have been looking into expanding our presence in the African continent for some time. We partnered up with 98 Degrees, and we agreed that XGLOBAL Africa would be a good name that reflects our interest in that region. We have added payment gateways to support that endeavour and remain optimistic that we can bring good change to the way brokers offer services in that region.”

“Our operation in South Africa has been structured in a similar way to our European operations, and we have adapted all compliance procedures to be compatible with the new jurisdictions in which we are now operating in,” added Hadi Zaarour, Chief Operations Office & Head of Compliance & AML, XGLOBAL Markets.

Read this next

Retail FX

Weekly Roundup: John Oliver rips into MetaTrader, Binance to pay $10 billion

Welcome to this week’s roundup, where we delve into the latest developments in the Forex, Fintech, and cryptocurrency markets. Stay ahead of the curve with our comprehensive overview of the week’s most impactful events and trends across these dynamic sectors.

Retail FX

Lark Funding reopens to US traders, MyFundedFX picks cTrader

Canada-based prop trading firm Lark Funding announced it will once again welcome clients from the United States.

Institutional FX

Cboe FX volume falls to lowest level since summer

Cboe’s institutional spot FX platform, known as Cboe Spot, today announced its trading volume for the month ending February 2024, which took a step back after a strong rebound in December.

Retail FX

ThinkMarkets secures lucrative DFSA license in Dubai

Melbourne-based broker ThinkMarkets has secured a license from the Dubai Financial Services Authority (DFSA) after it has already incorporated its new subsidiary in the Dubai International Financial Center (DIFC).

Digital Assets

New Horizen Lays Out Its Vision Of A Modular, Proof Verification Layer For Web3 Networks

Horizen is forging a new path for the future of blockchain with its New Horizen initiative, which is building a modular Proof Verification layer that’s dedicated to verifying cryptographic proofs for any settlement layer, beginning with Ethereum. 

Digital Assets

Karma3 Labs Raises a $4.5M Seed Round Led By Galaxy and IDEO CoLab to Build OpenRank, a Decentralized Reputation Protocol

Using OpenRank, developers and web3 companies can build consumer apps where people can discover, use, fund, read, or buy something on-chain without worrying about getting spammed or scammed.

Digital Assets

Worldcoin down as Elon Musk sues OpenAI CEO Sam Altman

Worldcoin’s (WLD) token dropped following news of a lawsuit against related company OpenAI. The lawsuit was filed by Elon Musk and accused OpenAI and CEO Sam Altman of breach of contract.

Institutional FX

Exegy’s Liquidity Lamp adds intraday data to outperform S&P 500 by 31.8%

Exegy has incorporated intraday signals into its AI-powered iceberg order detection tool, Liquidity Lamp. By adding intraday data to a baseline mean reversion strategy, Exegy’s model outperformed the baseline by 10.5% and the S&P 500 (SPY) by 31.8%, respectively in the out-of-sample testing.

Industry News

Think Elon Musk backed your crypto exchange? ASIC’s latest reveal may shock you

In an absolutely shocking turn of events that nobody could have possibly seen coming, the Australian Securities and Investments Commission (ASIC) has bravely stepped forward to reveal that, yes, those videos of Elon Musk passionately endorsing a cryptocurrency exchange are as fake as a three-dollar bill.

<