RCG takes advantage of US retail consolidation
Global futures clearing firm Rosenthal Collins Group (RCG) has taken advantage of the higher capital requirements for retail FX platforms in the US and snapped up MG Financial, which is now a fully owned subsidiary.
Retail players in the US will need to maintain $10 million in net adjusted capital from the end of October. A year ago, they were required to post just $1 million, and the new measure has resulted in the number of registered forex dealer members in the US falling from 34 to 24. MG appeared to be struggling to meet the new threshold. According to the last Commodities Futures Tracing Commission report, it had only $5.4 million in net adjusted capital.
But it is an established player. “MG is a pioneer in online foreign exchange, with a terrific product set, great technology and clients in more than 100 countries,” says Scott Gordon, RCG chairman and chief executive officer. “This combination allows RCG to continue our aggressive growth plans and to build on solid relationships in key geographical regions with an innovative company that shares our commitment to integrity and the highest levels of client service.”
MG also sounds content with the deal. “We are very pleased to cement our relationship with RCG, a firm with a strong foundation, cutting-edge technology and a similar, client-focused culture,” says Marla Miller, its president and chief operating officer, adding: “We believe that the significant client loyalty MG has earned over the years, combined with RCG’s vast resources and capital, will benefit both companies in expanding our business opportunities globally.”