Rakuten Securities, the Japanese multi-asset broker, announced it has signed a joint venture contract with Malaysia’s Kenanga Investment Bank Berhad (MYX:6483) to set up the first pure online retail securities business in Malaysia.
Under the agreement Kenanga, which is the third-largest among general securities companies and the first among retail securities companies in Malaysia, will be using the experience and technologies of Rakuten Securities, which has a vast experience of online trading of various financial instruments, including forex, futures, equities, mutual funds, etc.
On its part, Kananga Group will cooperate to provide Malaysian retail investors with a new investment experience that allows them to do all the necessary processes for stock trading via Internet, and aim to attract new customer base.
“We are delighted to be signing a joint venture agreement in partnership with Kenanga Investment Bank, one of Malaysia’s leading investment banks,” said Yuji Kusunoki, President, Rakuten Securities, quoted in the press release. “This is a great opportunity for us to expand our 100% purely online brokerage business into Malaysia.”
The 50:50 partnership is subject to approval by the regulatory organs. It is expected that the new trading platform will become fully operational in the spring of next year.
Tokyo-based Rakuten Securities is a multi-asset broker, which product portfolio includes diverse trading instruments, including more than 40 currency pairs, options, futures, commodities, stocks and bonds. It was the fourth-largest in Japan in 2015, in terms of retail forex trading volumes, on a non-consolidated basis, and second in terms of equities volumes.
Last year Rakuten acquired FXCM Japan and FXCM Hong Kong from the US forex broker Forex Capital Markets (FXCM). The two former FXCM subsidiaries are still operating under its brand and use its trading system, but in this month the Hong Kong branch will be rebranded as Rakuten Securities Hong Kong Ltd.
Rakuten Inc. is a holding company and its subsidiaries are active in a number of internet-based businesses, including finance, retail e-commerce, travel, e-money, and internet banking. Probably the most famous brand, owned by Rakuten is Viber.
Kenanga Investment Bank Berhad is part of the K & N Kenanga Holdings Berhad and provides investment banking, stock broking, and related financial services in Malaysia. The company’s products and services include corporate and institutional coverage, corporate finance, debt and equity capital markets, corporate banking, Islamic finance, equity broking, equity derivatives and structured products, and treasury, as well as investment research and advisory services.