MF Global buys binary trading firm ChoiceOdds
07 January 2008 | 1950 views | 0
Source: MF Global
MF Global (NYSE: MF), the world's leading futures and options broker, has acquired ChoiceOdds, a leading independent UK-based financial binary trading firm, subject to regulatory approval.
ChoiceOdds, specializes in making on-line markets in this fast-growing area of retail binary trading - an asset class which is rapidly replacing more traditional types of trading.
"This acquisition will play an important role in our European and Asian retail strategy, as we create single platforms to enable private clients to trade a range of OTC products that replicate listed equivalents such as exchange traded futures and foreign exchange. The acquisition will augment our already significant offerings in retail foreign exchange, CFDs, and spread trading," said Kevin Davis, chief executive officer of MF Global. "Binary trading is growing at an exceptional rate in Europe and Asia as clients are attracted by their flexible nature and, in some cases, tax advantages. In due course, certain markets offered by ChoiceOdds in an OTC context in Europe and Asia will be offered on a listed basis via USFE, the exchange of which we own 49.9%."
ChoiceOdds is a specialist in financial binary trading offering an unrivalled selection of fixed odds, floating odds and binary trades. ChoiceOdds is the only technology platform to offer such a wide variety of trades as well as enhanced frequency of five-minute, hourly, midday and daily trades. Trading on the ChoiceOdds platform allows customers to trade a diverse set of products and markets with limited risk and, in some jurisdictions, tax-free gains.
Mr. Davis added, "The electronic retail movement toward binary products in Europe and Asia illustrates the evolution of the capital markets toward a more balanced playing field opposite retail market participants, requiring less capital intensive strategies and offering more frequent opportunities to profit. Our acquisition of ChoiceOdds is another example of our operational and financial strength allowing us to pursue strategic opportunities globally. Our balanced business model, coupled with the continued pace of trading volumes and market volatility worldwide, gives us great confidence in achieving our financial and operational objectives."
Choice Odds is a wholly-owned subsidiary of Choice Gaming Ltd. MF Global believes the transaction will be neutral to earnings over the next 12 months.