LeapRate Exclusive… LeapRate has learned that global Retail FX brokerage Blackwell Global successfully upgraded the FCA license of its UK arm Blackwell Global Investments (UK) Limited, to a full-scope “IFPRU €730k” license.
The new license became effective as of August 1. Blackwell Global UK’s previous license, received in early 2016 as was also exclusively reported by LeapRate, was a 125K license, as a matched principal broker.
To support the upgraded license and its higher required capital requirements, we also understand that the global parent company has injected more capital into Blackwell Global UK over the past three months, to the tune of about £1.2 million (about USD $1.5 million).
The company said that the variation of permission to the highest license level issued by FCA ensures that Blackwell Global UK adheres to good corporate governance, stringent risk control measures and increased liquidity levels.
Patrick Latchford, Blackwell Global
Patrick Latchford, Blackwell Global UK CEO, commented to LeapRate,
Given the imposition of the new ESMA regulations, especially in relation to negative balance protection, the timing was right to gain the full licence and continue to grow the business. Blackwell Global supports the FCA’s efforts to properly account for market risk and its encouragement of brokers to move away from the matched principal model.
The company also told LeapRate that this licence upgrade is part of Blackwell Global’s (global) strategic development plans as the group continues to grow its presence in Europe to complement its strong position in Asia. Apart from the FCA regulations, Blackwell Global UK also complies with the European Securities and Markets Authority’s (ESMA) Markets in Financial Instruments Directive (MiFID).
The FCA upgrade also helps explain why Blackwell decided to give up its CySEC CIF license, as we had reported back in June, with the company simply redeploying resources into a higher license level in the UK.
Blackwell Global is controlled by Taiwanese businessman Kaw-Sing (Michael) Chai. Since its founding in 2010 the group has been mainly focused on Retail FX brokerage for Chinese and Far East clients, while more recently starting to build up its European business.