Swiss largest online broker has just published their 2010 results. Even though a 40 percent decrease in profits vs. 2009 - blamed mostly to the acquisition of Advanced Currency Markets SA and Tradejet - the firm highlighted a high increase in revenue generated in the 4th quarter, once acquisitions started to leave their toll.

From Swissquote press release, there is one paragraph to highlight here:

“Trading results, in which the eForex business predominates, expanded disproportionately by
58.1 percent to CHF 29.0 million (CHF 18.3 million) thanks to organic growth and the acquisition of
ACM on 26 October. In the 4th quarter, trading results rose by 129.2 percent. eForex trading volumes rose to CHF 185.4 billion (CHF 77.2 billion) in 2010 and are forecast to grow to about CHF 550 billion in 2011. On the basis of this development, the trading business will account for at least 40 percent of total revenues in future. This will substantially reduce dependence on the commission business.”

Swissquote revenues exceed CHF 100 million
In 2010 overall revenues rose by 6.1 percent year-to-date to CHF 104.6 million (CHF 98.6 million) – revenues increased by 41.3 percent in the 4th quarter alone. Operating expenses rose by 24.5 percent to CHF 70.7 million (CHF 56.8 million). Net profit amounted to CHF 21.2 million. Thanks to solid growth of 19.2 percent in client numbers to 172,091 and the associated record inflows of CHF 1.477 billion in new monies, assets under custody exceeded CHF 8 billion for the first time. In 2011, Swissquote has set itself the target of growing revenues by approx. 50 percent and assets under custody by CHF 2 billion.

PRESS RELEASE - FOR IMMEDIATE RELEASE

November 1st 2010

As of October 26^th, 2010 - ACM Advanced Currency Markets was acquired by Swissquote Bank Ltd (http://www.swissquote.ch).

ACM now operates under Swissquote’s banking license and will benefit from Swissquote’s good reputation, solid balance sheet and healthy profitability.

The transaction benefitted both parties as ACM was able to join Switzerland’s largest online bank and Swissquote gained a great foothold in the global FX market.

We look forward to working with Swissquote in the future as the synergy between both companies will bring new products and services to both Swissquote and ACM clients.

Swissquote’s shares are listed on the Swiss Stock Exchange, symbol: SQN.

For more information or for a free software trial, visit ac-markets.com

www.ac-markets.com

Swissquote acquires ACM and massively expands forex business
Swissquote Bank Ltd. has acquired ACM Advanced Currency Markets AG with effect from
October 26, 2010. The parties have agreed not to disclose the acquisition price. ACM is
headquartered in Geneva and has branches in Zurich and Dubai. With a headcount of around
100 employees, it is one of the world’s largest forex trading companies. ACM has achieved
revenues of CHF 27 million in the first nine month of 2010.
A transaction benefiting everyone involved
The acquisition of privately owned ACM by Swissquote is an astute forward-looking solution that
benefits all parties concerned. The takeover and subsequent merger with Swissquote Bank allows
ACM, which does not hold a banking license, to continue operating in forex trading. Since it was
founded in 2002, ACM has made a name for itself on the international markets by offering forex trading
free of commission fees at the lowest spreads with guaranteed order execution. The takeover will not
change anything for ACM’s clients since the existing platform and attractive conditions remain in place.
But they will benefit from Swissquote’s good reputation, solid balance sheet, healthy profitability and,
above all, from the banking license it has held since 2000. FINMA approves the takeover and will
monitor integration, which is to be completed in the coming months.
Swissquote_Acquires_ACM

Hi everyone

Andrew Grasso, e-marketing Manager at ACM was so kind to come all the way from Switzerland to attend our Wednesday dinner party and spend a couple of days with us.

Yesterday he stopped by the ITC to gave us a present from ACM, a pair of outstanding cuff links and some chocolate that was taken off my hands by my staff

I want to thank Andrew for being here with us and Gregory Baud, Head of Marketing at ACM for the nice gift.

Thanks guys!

Francesc

Hi everyone

Yesterday I published here the shocking news appeared at The Tribune de Genève that Switzerland’s Financial Authority FINMA had denied the banking license to ACM (Advanced Currency Markets) probably the oldest and bigger retail Forex broker in the country.

FINMA Denies Banking License To ACM. ACM Takes The Decision To Court

I put myself immediately in contact with ACM management to look for any official statement they may had that would shed some light on all this.

Here you have ACM’s official statement about all this:

ACM – Sept 2010

ACM, Advanced Currency Markets, is still undergoing the process to become a Swiss bank.

Recent press articles surrounding ACM’s status have evoked events that took place several months ago. Following FINMA’s preliminary review as of December 2009, ACM was found not to satisfy all the requirements for Swiss bank status due in part to impediments arising from ACM’s cross-continental and cross-jurisdictional, global presence.

Since that time, the firm has effectively adhered to all banking regulation required by FINMA and its activities continue without restriction.

ACM has and continues to work closely with the regulator and has taken all necessary measures to resolve outstanding issues. An independent 2010 audit confirmed that the firm fully complies and fulfills all necessary requirements – be they structural, organization or financial - for its banking license.

ACM is confident in the positive resolution of this case and optimistic about the company’s future.

In the interim, the largest retail Forex broker in Europe continues normal business operations and trading.

ACM recently launched a new Web-based trading system as well as added several new features to its revamped homepage.

www.ac-markets.com

At this time, this is all I’ve got… I will try to contact ACM management to find out more

Stay tuned

Francesc

FINMA not granted a banking license to ACM
By the Tribune de Genève
JUSTICEDu made his appeal to the Federal Administrative Court, the Geneva firm has a suspensory effect and can keep the currency trading online.
Delicate situation. FINMA (Federal Supervisory Authority for Financial Markets) has refused to grant a banking license to ACM (Advanced Currency Markets), domiciled Rue du Rhône 50.
The fate of one of the largest online currency broker in the world now depends on a verdict awaited the Federal Administrative Court (TAF). The management of the property is shown resolutely optimistic.
After the revision of the Banking Ordinance, approved by the Federal Council in March 2008, specialists from online currency trading had to seek a banking license from FINMA later than April 2009. ACM has not failed to comply with new regulations. He presented his case to FINMA in March 2009.

ACM contest in court the refusal of FINMA
By Le Temps
The broker sees Geneva currency for the time his application for a license refused by the banking supervisory authority of the markets. It made appeals against that decision on May 5 before the Federal Administrative Court.
The federal oversight of contracts - FINMA - yet refused to grant a banking license to the Geneva-based brokerage Currency Advanced Currency Markets (ACM) said Wednesday the Tribune de Genève.
The fate of the company founded in 2002 now depends on a verdict the Federal Administrative Court (TAF), the paper explains: Despite the refusal of FINMA, ACM is allowed to continue operations, while the AFT has rendered its Judgement.

Update: After reading the news above, I put myself immediately in contact with ACM management to look for any official statement they may had that would shed some light on all this.

Here you have ACM’s official statement about all this:

ACM – Sept 2010

ACM, Advanced Currency Markets, is still undergoing the process to become a Swiss bank.

Recent press articles surrounding ACM’s status have evoked events that took place several months ago. Following FINMA’s preliminary review as of December 2009, ACM was found not to satisfy all the requirements for Swiss bank status due in part to impediments arising from ACM’s cross-continental and cross-jurisdictional, global presence.

Since that time, the firm has effectively adhered to all banking regulation required by FINMA and its activities continue without restriction.

ACM has and continues to work closely with the regulator and has taken all necessary measures to resolve outstanding issues. An independent 2010 audit confirmed that the firm fully complies and fulfills all necessary requirements – be they structural, organization or financial - for its banking license.

ACM is confident in the positive resolution of this case and optimistic about the company’s future.

In the interim, the largest retail Forex broker in Europe continues normal business operations and trading.

ACM recently launched a new Web-based trading system as well as added several new features to its revamped homepage.

www.ac-markets.com

ACM has introduced the 2010 Web Trader

ACM’s (www.ac-markets.com) latest trading platform integrates new technologies and features not available during the original software development.

The new platform requires no download and comes with all the features expected of today’s FX dealing platforms plus:

· 3D components for sophisticated navigation and information management

· Dedicated spread charts integrated to the trading windows

· New simplified market and limit order placement forms

· Consumes less computer resources while provided enhanced data features

· Platform comes with two default skins– dark and light

As technology continues to progress, ACM will always ensure traders have the best tools available to meet their trading, risk-management and monitoring needs.

For more information or for a free software trial, visit ac-markets.com

Since its creation, ACM has grown continuously and now maintains sizable offices in Geneva, Zürich, New York, Dubai and Montevideo. ACM offers its clients fast, efficient and secure access to 4 different trading platforms as well as outstanding execution conditions.

www.ac-markets.com

Hi everyone

This morning I tried to contact Alexandre Axarlis, director and partner of ACM (AC Markets) and got the e-mail back.

I went to ACM’s web site and I was not able to find Alex at their Management Team page, so I decided to contact the Chief Marketing at ACM and ask him what had happened with Alex.

I got his confirmation that Alex had decided to step down from the operational management. I do not know exactly when and why this happened but I think it has not been long ago.

In November 2009, LLoyd La Marca, partner and CEO stepped down as well from daily management.

ACM - Advanced Currency Markets CEO, Lloyd La Marca, steps down from position

So from the 3 founders of the company, only Nicholas Bang is still in front of daily operations as a Deputy General Manager.

In the meantime, the Chief Marketing Officer told me that the company’s General Management was reinforced and Nicholas Bang was joined by Claude Favre, Fabrice Benouaich and Raoul Jacot-Descombes.

Asked about when they think they could get the banking license, the firm’s representative told me once again that they are still awaiting the FINMA’s decision, and that they hope that it will be very soon.

MIG Bank was the first Swiss Brokerage firm to get FINMA’s banking license on December last year.

M I G BANK: First Swiss Forex broker to obtain a Swiss banking license

Stay tuned

Francesc

ACM – Advanced Currency Markets Raises Additional Share Capital
Tue Oct 20, 2009
GENEVA - The shareholders of ACM (www.ac-markets.com), the top Swiss online currency trading firm, endorsed an additional capital raise of 10 million CHF during their latest general assembly.

The capital increase raises ACM’s overall share capital to 30 million CHF; a move financed solely by existing shareholders. The step solidifies ACM’s place as the most capitalized Forex broker in Switzerland.

Reinforcing the framework surrounding the firm’s banking licence, the enlargement demonstrates ACM’s commitment to autonomy, strength and durability.

“The increase guarantees our independence while freeing ACM to dedicate further resources to both enlarging our investment offering and tackling new markets” said Lloyd La Marca, CEO and co-founder of ACM.

From its inception, ACM (www.ac-markets.com) has grown to meet the needs of its expanding client base – founded in Geneva, the company now maintains offices in Zürich, New York, Dubai and Montevideo. The Swiss firm offers efficient and affordable FX trading with no dealing-desk intervention to private individuals as well as institutional clients.

www.ac-markets.com

COMPLAINT:

On June 10, 2009, NFA issued a Complaint alleging that ACM failed to file required financial reports in a timely manner. The Complaint also alleged that Anderson failed to supervise ACM’s operations.

ANSWER:

On June 30, 2009, Anderson filed an Answer to the Complaint in which he denied the material allegations contained therein.

DECISION:

On September 25, 2009, Anderson was ordered to refrain from being a principal of an NFA Member for one year; or, alternatively, if Anderson elects to become a principal of an NFA Member during the one-year period, then he was ordered to pay a $5,000 fine to NFA within thirty days of becoming a principal.

ACM USA Case Summary
Edward George Anderson Case Summary