LeapRate Exclusive Interview… In our continuing series of discussions and interviews with leading figures in the Retail and Institutional FX trading scene ahead of pending ESMA rule changes (now just a week away!), we’re pleased to speak today with Hayel Abu-Hamdan, Director and COO of London based Hantec Markets.
What is Hantec Markets’s approach to cryptocurrency trading?
How does it see the ESMA leverage rule changes affecting the company, and the industry?
How is Hantec Markets doing?
Here is what Hayel had to say about these issues, and a whole lot more…
LR: Hi Hayel, and thanks for joining us today. From what we reported 2017 was something of a slow year for Hantec Markets. But toward the end of the year you closed a sponsorship with West Ham United, and earlier this year Hantec Markets launched spread betting on MT4. How has 2018 gone so far for you?
Hayel: Hi, and thanks for having me. 2018 has been a great year for Hantec Markets so far. Our Financial Year ended 30th June and I am proud to announce that it was a record year for us. We have all put the disappointment of 2017 behind us and the whole team has worked tirelessly to make 2018 a success.
We’ve launched a brand new website and continue to make improvements to our infrastructure to streamline many areas of the business, increasing efficiency and ultimately service for our customers. We’re bullish of what the future holds for Hantec Markets and we’re busy preparing for that.
LR: How is Hantec Markets preparing for the new ESMA rules, limiting leverage and introducing some other limitations on brokers? Do you see the new rules significantly affecting your business?
Hayel: We’ve been busy as you can imagine! There have been wholesale changes to the way in which retail accounts will operate, and like most other brokers we’ve been ensuring Hantec Markets stays ahead of these changes. The effect on business is an unknown, but we have a loyal client base that is continuing to grow and retention is a strong area of our focus so we are confident any impact will be minimal.
LR: How do you see these regulatory changes, as well as general market conditions right now, affecting the Retail FX sector overall? Will the industry look a lot differently a year from now?
Hayel: I’m sure the industry will look a little different, as the changes will clearly benefit the larger and well capitalised companies over the smaller broker. So perhaps we’ll see some consolidation within the industry and some others fall away naturally. With the uncertainty over Brexit and volatility in the dollar due to the administration there, the interest in the market now is as strong as it’s ever been. I’m sure we won’t be the only broker hoping to capitalise on this!
LR: Hantec Markets has yet to launch cryptocurrency CFDs, which have taken off and driven volumes at some of the other FCA licensed brokers. What is going to be your approach to cryptos?
Hayel: Our approach will be a slow introduction. There is certainly an interest from some of our clients to trade Cryptos however, much of the volatility has left that market place. I’m sure you’ll find much of the initial interest and volume in the market has disintegrated and many clients are now coming back to the FX market in search of larger moves. So whilst we’re looking forward to adding some Cryptos to our offering soon, they will only supplement our core product offering. In addition, with the ESMA leverage limits on these at 2:1, we may see clients revert to buy the physical.
LR: What other changes and news can we expect to hear from Hantec Markets in the coming months?
Hayel: As I mentioned, it’s been a busy time for the team here. We will be announcing the opening of a new office in the Middle East region in the coming months. We are hugely excited about obtaining the regulatory licensing because this strongly complements Hantec Markets’ other offices globally and we look forward to expanding the Hantec Markets brand in the Middle East. We’ve also been busy with improving our IT infrastructure and will look to roll out internal and external initiatives by the end of 2018 which will improve the trading experience for our clients even further. The future is certainly looking bright and we’re very positive for the future!