Forex Capital Markets (FXCM) has inked a deal to acquire the retail foreign exchange business of Knight Capital Group's Hotspot FXr. Financial terms of the deal were not disclosed.
Hotspot FXr's retail clients will move to FXCM's Active Trader platform on 13 February, subject to their consent and regulatory approval.
Drew Niv, CEO, FXCM, says: "Hotspot FXr is a major innovator in the field of fair and transparent pricing. While the retail clients of Hotspot FXr will be moving to a new platform, they will continue to receive pricing which is free of influences from the dealing desk."
The deal does not include Hotspot FXi, which will continue to offer its platform for institutional forex trading.
Knight Capital Group acquired Hotspot FXr, along with Hotspot FXi, in 2006 in an all cash deal worth approximately $77.5m.
The platform was founded in January 2000 by a team of senior foreign exchange managers from major international banks. The company was venture-backed by the ETF Group and currency trader Joe Lewis.
It's the second acquisition in under a fortnight for FXCM, which also bought the US division of ODL Securities earlier this month.