An Australian provider of derivatives risk management software and trading technology has made two acquisitions as it moves to build an independent trading ecosystem for the country's financial advisers.
TradeFloor has acquired online stockbroker OpenMarkets as well as the technology behind CCUBE's wealth management solutions, following CCUBE's voluntary administration in the midst of the COVID-19 crisis.
TradeFloor managing director Ivan Tchourilov said the acquisitions would enable the software provider to build a trading ecosystem with a full suite of products of financial advisers and retail traders.
"These acquisitions will enable us to build an independent trading ecosystem where advisers and planners can come to find the best possible solutions for clients," he said.
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"We're also building dedicated products like OpenTrader, a trading platform for self-directed investors.
"We've already seen significant economic results come out of the OpenMarkets acquisition and have been able to fast-track our plans to strengthen our intermediary offering with the acquisition of CCUBE technology."
TradeFloor, OpenMarkets and CCUBE will now belong under the corporate entity OpenMarkets Group.
Tchourilov will serve as managing director, while Brock Janiczak has been appointed chief technology officer and Deane Sweeney has been appointed chief operating officer and general counsel.
OpenMarkets' online trading platform will now be powered by TradeFloor, the software company said.
"Having operated for more than seven years, [OpenMarkets] boasts 57,000 clients and is the largest independent, non-bank aligned ASX Clearing and Settlement Participant," it said.
"Tchourilov and Janiczak have acquired a 50% stake of OpenMarkets Group, which now includes TradeFloor, for $25 million."
CCUBE, a financial planning and wealth management technology solution, entered voluntary administration as a result of the COVID-19 crisis. More than 300 financial advisers from more than 120 practices currently use the platform.
OpenMarkets Group said the company's key staff members would be rehired to ensure clients received support during the transition.
CCUBE interim chief executive David Gage said he was relieved some of the software firm's staff had been rehired to assist in the transition.
"We're happy to see our clients in the hands of a company with a clear understanding of the planning and advisory space," he said.
"Our clients will have continued access to the CCUBE platform and will soon have access to TradeFloor solutions as well.
"OpenMarkets Group has been able to rehire some CCUBE staff members at a time when so many workers have been impacted by COVID-19 and for that, we are immeasurably grateful."