ETX Capital snaps up client list of collapsed Alpari
Spread-betting firm ETX Capital has snapped up the client list of Alpari UK in a deal which could generate millions for the creditors of the stricken broker hit by the unpegging of the franc against the euro, including 2,000 Irish clients.
Alpari UK, the former sponsor of West Ham football club, crashed into insolvency in January with €100m in clients assets when the Swiss central bank abandoned its attempt to peg the franc against the euro.
The move caused wild swings in the €4.8trn-a-day foreign exchange markets. Some client accounts fell into negative territory, which the firm was required to cover. It was put into special administration and client funds were frozen.
There was light at the end of the tunnel earlier this month when the UK Financial Services Compensation Scheme said people who had lost money in Alpari could claim for up to £50,000.
Now ETX Capital, the London-based spread betting house that bought Shelbourne Markets last year, has bought Alpari's client data.
ETX will reportedly pay around €3m for the data although if a higher number of Alpari's clients migrate over it could end up paying more than €9m, which will mostly be used to help reimburse creditors.
Its brand and intellectual property were also sold to raise money.
Sunday Indo Business