iFX EXPO International 2023: 26 Degrees talks CySEC license, oneZero infrastructure, liquidity stress

26 Degrees executives spoke with FinanceFeeds Editor-in-Chief Nikolai Isayev about the continued expansion in the EMEA region as the Prime of Prime Broker’s subsidiary now holds a CySEC license and is powered by oneZero’s trading technology.

FinanceFeeds sat down with top executives of 26 Degrees Global Markets at the IFX Expo International to discuss the company’s ambitious growth strategies and recent regulatory milestones.

James Alexander, Global Chief Commercial Officer, Riana Chaili, Chief Executive Officer of EMEA and Lochlan White, Chief Commercial Officer of EMEA spoke about various topics ranging from regulatory concerns to technological advancements in the industry.

26 Degrees doubles down on EMEA with CySEC license

One of the major highlights of the interview was the recent awarding of a CIF license to 26 Degrees’ subsidiary from the Cyprus financial regulator, CySEC. “This additional license underscores our commitment to always operate under the most robust and transparent regulatory regimes and underscores our commitment both to the EMEA region and to our continued global expansion,” said Chaili.

White further elaborated on the company’s focus on the EMEA region, “I relocated from Australia to Cyprus two years ago as part of our global expansion plans and I absolutely love it here.” White has been instrumental in cementing relationships in Cyprus including the 26 Degrees sponsorships of local sporting associations like the Cyprus Rugby Championship.

FX industry challenges, better technology, new products

When asked about the Financial Stability Board’s recommendation for non-banks to review their leverage and margining practices, Alexander was candid, “We completely agree and think this is a necessary process. We support the advice and guidance of the Financial Stability Board,” he said, noting that 26 Degrees has a strong balance sheet and pursues best practice when it comes to margining and stress testing. As to liquidity stress, it’s an industry-wide phenomenon fuelled by balance requirements and interest rate divergence, “Some brokers are increasingly struggling to maintain yields under their existing internalisation and risk strategies”, Alexander said.

Both Chaili and White emphasized the significant impact of switching to oneZero’s trading technology last year. “It absolutely improved many workflows within our trading infrastructure. Speed and scale are crucial for us, both internally and for our clients,” said Chaili. White agreed, saying the upgrade has been one of the biggest milestones in his decade-long tenure at the company. “Technology is one of the most critical elements from a client point of view: they want convenience, speed, scalability, resiliency and they want redundancy, and that’s what our new infrastructure has provided to us”, White explained.

70% of 26 Degrees clients are outside Australia

As for upcoming products and services, Alexander disclosed that they have a new product underway but remained tight-lipped about the details, “Well, it’s not crypto. but we have plans to release a new suite of unique instruments for our Broker and Hedge Fund clients,” he noted. Chaili added, “We evolve our products through listening to the needs of our clients. We take advantage of the technology that we implemented a year ago in doing so.”

The conversation revealed a strong focus on expansion, particularly in the EMEA region, “When 70% of your clients are outside Australia it’s very important to listen to what our clients are saying, not to just assume what we think they need. We put ourselves in the position of the client to see how things could be better for them. We want to give them what they want. That’s an important difference and one of the reasons why we’re here today.”

The company’s focus on regulatory compliance, technology, and customer-centric innovation positions it as a rising star in the industry. As the FX sector undergoes rapid transformations, companies like 26 Degrees show that agility, compliance, and a keen understanding of client needs are key to long-term success.

With eyes on future innovations and a robust regulatory framework, 26 Degrees is setting the stage for continued growth and industry leadership.