Rosenthal Collins Group, LLC (RCG), a leading independent futures clearing firm, and MG Financial LLC, a leading provider of online trading services in the foreign exchange (FX) market, announced that they have successfully completed an exchange of equity interests in the two companies today. The transaction resulted in MG Financial becoming a wholly owned subsidiary of RCG.
“MG is a pioneer in online foreign exchange, with a terrific product set, great technology and clients in more than 100 countries,” said Scott Gordon, RCG Chairman and Chief Executive Officer. “This combination allows RCG to continue our aggressive growth plans and to build on solid relationships in key geographical regions with an innovative company that shares our commitment to integrity and the highest levels of client service.”
”We are very pleased to cement our relationship with RCG, a firm with a strong foundation, cutting-edge technology and a similar, client-focused culture,” said Marla Miller, President and Chief Operating Officer of MG Financial Holdings LLC. “We believe that the significant client loyalty MG has earned over the years, combined with RCG’s vast resources and capital, will benefit both companies in expanding our business opportunities globally.”
MG Financial will retain its name and present management, as well as continue to offer its full spectrum of FX products through its proprietary DealStation trading platform. Based in New York, MG places a strong focus on communications with its global client base of online retail FX traders. Every MG employee speaks at least two languages fluently, including Mandarin, Japanese, Russian, Arabic, German, French and Spanish. The firm has an extensive client base in Asia, particularly among Chinese-speaking clients outside of China, due to regulatory restrictions in mainland China. MG Financial has recently provided input to Chinese regulators on how the FX markets operate in the United States. MG also serves a large client base throughout Central and South America, the Middle East and Eastern Europe.
RCG, headquartered in Chicago, had client equity of $1.6 billion in the second quarter of 2008. The futures brokerage and clearing firm has more than 25,000 active accounts. MG has been gearing up to offer RCG’s suite of futures and options products to its clients, white-labeling the proprietary state-of-the-art RCG Onyx 2 electronic platform with the name DealStation Futures. MG will serve as an introducing broker to RCG for futures.
Said Maureen Downs, RCG President: “Last fall, RCG embarked on a strategic growth initiative, with the stated purpose of capitalizing on the growth in global demand for futures and options, and building market share particularly in Europe, South America, the Middle East and Asia. We have made great progress in the past year, and today’s transaction with MG takes us to a whole new level with an unparalleled futures and FX offering throughout key Asian markets and all of these regions. We are also delighted to bring together DealStation, the terrific technology MG developed, with our own successful RCG Onyx 2 platform, both of which are robust, user-friendly platforms.”
“Our dedicated staff, composed of former bankers, is very enthusiastic about this business combination and the opportunity for cross-marketing of futures and FX products,” said Peter Wong, Chief Executive Officer of MG Financial. “We remain committed, as always, to protecting our clients’ interests and ensuring that their investments are best suited to their needs and risk tolerance.”
