Christian Frahm
Christian Frahm

CFH positions itself to become number one B2B provider in the retail FX industry

Having entered into an agreement to sell its business to Playtech for up-to 120m USD, CFH is being transformed into one of the biggest B2B organisations in the retail FX industry in terms of capital and balance sheet. Christian Frahm, Founder and CEO of CFH Group talks to e-Forex about the advantages of the acquisition for its institutional clients worldwide and CFH’s future plans.

First Published: e-Forex Magazine 74 / Sponsored Statement / December, 2016

Why did you feel the time was right for CFH Group to be acquired?

Shortly after the SNB event in January 2015 we announced that we saw a major consolidation opportunity in the retail FX industry – an industry which is maturing, with an increasing amount of regulation. We believe the fragmented nature of this industry is ripe for someone to come in and bring the pieces together in terms of both brokerage services and technology. Whilst looking at potential M&A targets we had discussions with a number of companies who shared our vision of where the industry is heading. This process led to us seeking a financial and strategic partner with experience, capital and scale to help us to drive the market forward through consolidation. Following the recent announcements from the FCA and Cysec on leverage restrictions, we believe consolidation will be accelerated.

Why did you consider Playtech to be the right company to acquire CFH?

Playtech is a FTSE 250 company with a $5 Billion USD market cap - a world leading B2B business with an in-depth understanding of how to execute M&A successfully. It provides many of the world’s leading regulated online betting operators with the tools, knowhow and technology to win and scale their businesses in their local markets. There are a lot of synergies between our businesses. Their expertise and resources will be a catalyst for our next growth phase.

How does the acquisition impact CFH’s clients?

We have seen an overwhelming positive response from our clients. We continue to operate under our existing brand as an independent business, with the same people, same management team, same strategy and same business model. Thanks to the acquisition, our clients now have the added security that CFH is part of Playtech and that we have the most well capitalized balance sheet in the industry. Moving forward, clients will benefit from access to new products and services, improved trading terms and a wider range of instruments.

CFH Clearing is authorised and regulated by the FCA. For further information, please visit www.cfhclearing.com