Trading and wealth management infrastructure fintech OMG has extended its pre-IPO raise to $17.8 million to support continued record growth, with the majority of funds derived from sophisticated investor clients of OMG's B2B arm, Openmarkets, and its retail trading product, Opentrader, and the remainder from existing investors.
This level of demand from investment professionals, whose fingers are firmly on the pulse of capital markets, indicates strong confidence in OMG’s ability to provide the markets infrastructure for Australia’s best investment professionals and trading companies.
OMG has also entered into a sale agreement for the acquisition of equities markets-specialist tech & API developer, Cannon Trading (Cannon), - for a transactional total of up to $10.8m, which is pivotal to the achievement of OMG’s vision of integration and open architecture. The transaction valued Cannon at $12.5m.
The acquisition will take OMG from a 40 percent to 100 percent ownership stake in Cannon, in a move that will significantly shore up OMG’s technology stack through Cannon’s market-leading APIs. It also secures OMG’s relationships with Cannon customers such as SelfWealth, Superhero, and Sixpark, consolidating OMG’s market leadership in the open API and trading infrastructure sector.
In addition to the new best-of-breed APIs acquired via Cannon, OMG also recently upgraded its back-office system for both domestic and international markets via global fintech GBST, delivered as a managed cloud solution. Its clients include top tier global investment banks and major Australian retail banks. More than 60 percent of all ASX trading activity is processed through GBST’s systems.
As a result, OMG’s tech stack now extends from KYC and onboarding, to CRM, managed accounts, and order and risk management and execution, with global capabilities.
In the past month OMG also made a number of senior appointments, including Volatility Funds Management chairman former UBS Managing Director, Michael Fagan (OMG’s new Derivatives Specialist) and a selection of former senior Pershing staff, including Scott Anderson (Head of Relationships), Phil de Hennin (Head of Equity Finance), Steven Graham (Equities Operations Manager), and Ian Tran (Head of Execution) as well as Klaas Raajmakers (currently Head of Product at Stan, previously Chief Product Officer at B2B scaleup Deputy, who will shortly be joining as OMG’s Chief Product Officer).
The capital injection combined with the acquisition, back-office technology upgrade, and senior management hires will all support OMG’s ability to service record growth experienced throughout 2021, which it expects to continue into 2022.
Ivan Tchourilov, CEO of OMG, said: “We decided to extend our pre-IPO due to continued record growth in trading volume, customers, and revenue throughout 2021.
“This additional growth capital is a clear demonstration of the continued support we are receiving from the capital markets, and the belief in our ability to build massive value for our shareholders and clients.
“Our provision of robust and globally-scalable trading and wealth management infrastructure tech allows us to more cost-effectively connect fintechs to markets, and intermediaries not just to markets but a range of integrated data and technology solutions to optimise their businesses.
“This will ultimately allow us to connect global consumers to affordable and specialist investing solutions by linking them into our marketplace, OMG’s wealth ecosystem.”
OMG has over 150 B2B clients (AFSLs), including significant retail players like Selfwealth, Stockspot and Superhero, while its technology stack supports over 750 financial advisors.
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Openmarkets Group (OMG) (www.openmarkets.group) is a trading and wealth management infrastructure fintech that provides a full suite of technologies for investment professionals and connects retail investors with investments and advice.
OMG consists of two enterprises:
Openmarkets is Australia’s largest independent retail broker and provides B2B platform and technology solutions across wholesale execution, order and risk management, advice and CRM, enabling investment firms, professionals, and fintechs to connect to markets and deliver white-labelled services for their customers.
Opentrader is Australia’s most competitive self-directed retail trading platform for professional traders and those who want to trade like a pro; from only $5 per trade.