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TechFinancials (AIM:TECH), a software developer that supplies simplified trading solutions to online brokers, is pleased to announce that it has successfully established its position as preferred software provider for liquidity providers operating in the US binary options market. This follows a very successful first day of trading through Cantor Exchange, a US regulated retail-focused binary options exchange owned by Cantor Fitzgerald, through which TechFinancials is collaborating as an independent software vendor.
Following a six-month initial integration period, TechFinancials went live with the Exchange on 23 March 2015. TechFinancials’ market leading pricing technology allows it to price options accurately even in complex situations such as demanded by USA financial regulation. TechFinancials’ experience in pricing binary options provided a highly successful first day to liquidity providers on the back of significant trading volumes.
TechFinancials has started discussions with potential Introducing Brokers (“IB’s”) to use an integrated solution with Cantor that allows them to serve traders who wish to trade binary options on the Cantor Exchange. This will allow maximal utilization of the TechFinancials’ platform and will help drive volume to the Exchange.
Cantor Exchange has recently started to offer gold binary contracts (as at 30 March 2015), using the Company’s technology to supply further liquidity to Cantor Exchange contracts.
The successful first day of trading that resulted from TechFinancials’ agreement with Cantor Exchange as well as the move into the US market represents an important milestone for the Group. It meets one of the key strategic objectives of penetrating new regulated markets with high growth potential as outlined at the time of the Group’s Admission to AIM on 16 March 2015. The regulated US environment represents a new growth market for the Company and its licensees, and entering this market marks an important milestone in the Company’s growth strategy.
TechFinancials’ Directors believe that newly regulated markets such as the US have high growth potential, and the Company’s expansion into the US market marks an important phase in its development. Additionally the increase in regulation through operations such as Cantor Exchange will help increase barriers to entry for new competitors looking to establish themselves in this market as well as current competitors who currently only produce simple products for unregulated markets.
Richard Jaycobs, President of Cantor Exchange, said: “Our business model is based on offering open access to our Cantor Direct FIX-based API thereby optimizing liquidity, transparency, and cost efficiency for traders. As a valued independent software vendor, TechFinancials is contributing an advanced, yet simple and user-friendly interface to complement our unique world-class mobile trading platform for web, Apple® and Android® devices. This will ensure that Cantor Exchange traders experience superb functionality, whether connecting directly to us or using technology provided by our ISV partners.”
Commenting on the agreement, Asaf Lahav, Group CEO of TechFinancials, said: “TechFinancials is very pleased to have been appointed by Cantor Exchange as its independent software vendor. TechFinancials’ ability to provide for liquidity providers on the Exchange, supported by our software platform, demonstrates the strength and technological advancement of the TechFinancials pricing engine compared to other industry players. We are particularly pleased to have entered such a high growth market such as the US and we look to further extend our footprint in this important growth region.
“The Board is pleased to have already delivered in key areas of our commitment to shareholders, particularly in relation to the growth strategy to enter new regulated markets with a high growth potential; which we set out at our IPO.”
– Ends –
For further information:
|TechFinancials, Inc.||Tel: +972 54 5233 943|
|Asaf Lahav, Group Chief Executive Officer|
|Yuval Tovias, Chief Financial Officer|
|Grant Thornton UK LLP (Nominated Adviser)||Tel: +44 (0) 20 7383 5100|
|Colin Aaronson / Samantha Harrison / Seamus Fricker|
|Northland Capital Partners Limited (Broker)||Tel: +44 (0) 20 3861 6625|
|David Hignell / Rob Rees|
|NEX Corporate Adviser and Joint Broker Peterhouse Corporate Finance||Tel: +44 (0) 20 7469 0930|
|Fungai Ndoro / Eran Zucker|
|Yellow Jersey PR Limited (Media Relations)||Tel: +44 (0) 7748 843 871|
|Charles Goodwin / Felicity Winkles|
Notes to editors:
TechFinancials was formed in 2009 to create a simplified trading solution for online brokers wanting to provide a platform for retail customers to trade in Binary Options. Founders Asaf Lahav, Eyal Rosenblum, Eyal Alon and Jeremy Lange, are a group of four experienced senior executives with technology, FOREX and online marketing backgrounds, while Chairman Christopher Bell has 20 years’ experience in the gambling industry and was the chief executive officer of Ladbrokes plc until 2010.
The Group’s platform is based on a proprietary pricing engine, which enables online brokers to price and market short-term Binary Options and Exotic Options. The Group launched a beta version of its platform with two online brokers: OptionFair, the Group’s own online regulated broker, and www.24option.com, the largest Binary Option broker in the world today, in April and July 2010, respectively. The Group subsequently launched a live version of the platform in January 2011. Currently, around 18% of all deposits which are made to trade Binary Options globally are processed using the Group’s software. In early 2014, TechFinancials began to focus on the Asian market, securing distribution in Japan and China. The Group has experienced substantial growth, with revenues of almost US$7.2 million in H1 2014, an increase of approximately 100% compared to H1 2013.
Binary Options are well-suited to retail customers because no in-depth knowledge of the financial markets is required in order to trade. Sometimes referred to as an “all-or-nothing option”, Binary Options either pay a fixed amount or nothing at all, depending on whether a certain condition is fulfilled when the option expires. By contrast, traditional or “Vanilla” options can have a range of outcomes. Binary Options can also serve as a gateway to more professional financial trading products such as FOREX.
The simplified Binary Options market, first introduced in 2008, has experienced significant growth not only in the number of online brokers operating in the market but also in terms of trading volumes. That growth is set to continue as the online trading market becomes better established on the back of increased regulation. This will result in larger and better established financial organisations entering into the Binary Options market. It is estimated that the global trading of Binary Options will reach approximately US$13.61 billion for 2014 and US$29.81 billion in 2016. Europe is currently the world’s leading market for Binary Options.
About Cantor Exchange
The Cantor Exchange, a regulated, retail-focused binary options exchange launched on April 8th, 2013, currently offers binary options trading on three FX currency pairs (EUR/USD, GBP/USD, USD/JPY) with flexible expiration times determined by market participants. Cantor Exchange provides both Direct Market Access (DMA) and Straight Through Processing (STP) to its market participants thereby enabling a fully transparent, high-speed and cost-effective trading experience. Members may trade with any of the Exchange’s liquidity providers or other Exchange members during its 22-1/2 hour trading day. Execution and settlement fees are not charged on price taking orders or out-of-the money settlements.
Cantor Exchange is one of the only three Designated Contract Markets (“DCMs”) licensed by the U.S. Commodity Futures Trading Commission (CFTC) to offer binary options to US citizens.
A binary option is a simple “All or Nothing” option contract that pays out a fixed amount depending on whether or not a market is above or below a specified strike price. Unlike margin trading, binary option traders cannot lose more than the initial cost of the trade should the market move against them. Due to their simplicity and known upfront risk, binary options are attractive to new as well as professional traders.
Binary options are a popular investment tool worldwide that have had a limited presence in the United States until now. The Cantor Exchange is proudly introducing these globally accepted products to U.S. retail traders as well as those individuals interested in a limited-risk investment alternative.
For further information, please visit www.cantorexchange.com.
Cantor Exchange is a subsidiary of Cantor Fitzgerald, a leading global financial services firm.
Cantor Exchange is a trademark of Cantor Futures Exchange, L.P.