
OpenMarkets Group
Founded Year
2012Stage
Acq - Pending | AcquiredTotal Raised
$7.6MAbout OpenMarkets Group
OpenMarkets Group is a fintech company that operates in the trading and wealth management sectors. It offers a range of services including financial advice, trading and brokerage API solutions, portfolio management, account opening, and risk management. The company was founded in 2012 and is based in Melbourne, Australia.
OpenMarkets Group's Products & Differentiators
Openmarkets Enterprise APIs
Providing access to the markets to enable not just trading but integration with data and news typically required by investment/trading products.
Expert Collections containing OpenMarkets Group
Expert Collections are analyst-curated lists that highlight the companies you need to know in the most important technology spaces.
OpenMarkets Group is included in 2 Expert Collections, including Wealth Tech.
Wealth Tech
2,051 items
Companies and startups in this collection digitize & streamline the delivery of wealth management. Included: Startups that offer technology-enabled tools for active and passive wealth management for retail investors and advisors.
Fintech
12,438 items
Excludes US-based companies
Latest OpenMarkets Group News
Jan 25, 2023
Homeowners may be fuming about rising interest rates that prompted an apology by Phillip Lowe, but for online broker SelfWealth (ASX: SWF), it’s kicked them into positive cashflow thanks to an abundance of customer funds being held on the platform. For the quarter ended 31 December 2022, SelfWealth reported $151k in positive cash flow but this is predominantly due to the increase in interest revenue on client cash held of $585m. With an interest rate of 3.1% on the client cash balances, this represents about $4.5m worth of interest income for SelfWealth which was not passed back to their customers. The interest forms a critical segment of the platform’s non-trading revenue. Revenue on trading activity came in at $1.9m for the quarter, declining 42% from $3.2m for the previous December quarter. Trading activity peaked in the March quarter of 2021 and totalled $3.9m, showing how far turnover has fallen from peak retail mania during the Covid period. Receipts from customers for the past four quarters showed $26m of inflow, and over the same four quarters a total of $30m in cash was spent. Total funds under management (FUM) increased 4% to $8.9 billion, comprising $8.1 billion securities held on HIN, and $583m in cash balances, leaving around $210m in overseas assets. SelfWealth had been hopeful that the introduction of cryptocurrency products would give their trading revenue a boost. But 12 months after announcing the ambitious plans, the broker confirmed they will no longer continue pursuing the project and halted its launch given market instability and lack of regulatory clarity - but depending on the future of the industry, there is a chance the project will be revisited. With the majority of SelfWealth’s total cash flow coming from interest income, the challenge will be to deliver on growth opportunities to prop up its bottom line. Seeking to improve their margins, Selfwealth confirmed FNZ as the new provider of equities clearing and settlements in Australia, replacing OpenMarkets Group (OMG) . As the transition gets underway while the current contract with OMG expires in late 2023, there are expectations that there will be a modest net financial benefit to SelfWealth. The switch away from Openmarkets to FNZ may influence OMG’s recent announcement of advancing the US market with its listing on the NASDAQ via a SPAC at a valuation of US$90m to US$110m. Over the past few years, SPACs have been a relatively new phenomenon, with cash-strapped private companies turning to Special Purpose Acquisition Companies (SPACs) as an alternative route to going public. This shortcut to becoming publicly listed avoids the usual regulatory hurdles and associated costs that come with a traditional IPO method-to-market. Described as ‘blank check’ companies, where investors sink money into a SPAC, they rely on these investments to provide strong returns for getting in early, with their decision driven by being able to create speculative interest. However, they come with inherent risks due to a lack of tangible operations or financial outlook, lack of prospectus and no regulatory oversight. It was only in June 2021 when OMG looked to float at a $160m valuation before online broker Superhero severed its clearing contract with the Group, and indirectly scuppered the planned ASX-listing. By early 2022, there were staff redundancies and the previous white-knight and CEO of the Company, Ivan Tchourilov resigned, prompting Dan Jowlett from Shaw and Partners to step in and restructure the business. By August 2022, OMG was restructured with the operating assets (e.g. Openmarkets Australia Ltd - the ASX participant) being sold off to a private equity vehicle. This left the previous holding company, Openmarkets Group Ltd and its shareholders with minimal tangible assets. The Australian Financial Review points out that OMG will issue a proxy statement and SEC approvals in February. This may show the impact and loss that SelfWealth had on the business.
OpenMarkets Group Frequently Asked Questions (FAQ)
When was OpenMarkets Group founded?
OpenMarkets Group was founded in 2012.
Where is OpenMarkets Group's headquarters?
OpenMarkets Group's headquarters is located at Level 5, Suite 3, Melbourne.
What is OpenMarkets Group's latest funding round?
OpenMarkets Group's latest funding round is Acq - Pending.
How much did OpenMarkets Group raise?
OpenMarkets Group raised a total of $7.6M.
Who are the investors of OpenMarkets Group?
Investors of OpenMarkets Group include Broad Capital Acquisition, Investec and E&P Corporate Advisory.
What products does OpenMarkets Group offer?
OpenMarkets Group's products include Openmarkets Enterprise APIs and 3 more.