Investor Information
Background
SYCAP Group AB was founded in Sweden during 2006 for developing
CFD and Spread Betting software as well as offering those services
to end customers and business to business partners.
The thought behind SYCAP Group AB is that by creating its own
software as opposed to licensing another software package it could
achieve a competitive advantage and considerable cost savings.
SYCAP Group AB earns considerable income from license fees
generated by its trading platform called the PRIME Platform™.
During 2007 SYCAP Group AB entered into a joint venture to
create Gekko Global Markets Limited which began to offer trading of
CFDs and Spread Betting during 2009. Gekko was 50 % owned by SYCAP
Group UK Limited. Since March 2009 Gekko has opened 2000 live
accounts and is experiencing explosive growth.
The trading of CFDs and Spread Betting is one of the fastest
growing segments of the financial industry where SYCAP is well
positioned with one software company and one operating trading
company.
The market for Spread Betting and CFDs
The CFD market started in England during the late 1980s as an
institutional product offered by large banks and brokers in order
to avoid the associated stamp duty when trading shares on the
London Stock Exchange. Since the year 2000 the trading of CFD and
Spread Betting gained popularity among private investors with the
industry currently growing faster than 30 % per year.
The most well known companies within the segment are IG Group
and CMC Markets where IG Group is currently listed in London with a
market capitalization of £1.2 billion GBP and annual turnover of
£257.1 million GBP.
Another company worth mentioning is Capital Spreads which is
owned by London Capital Group. London Capital Group was previously
owned by John Rowe who is the CEO of SYCAP. Mr. Rowe introduced
Spread Betting during October 2003 through the brand Capital
Spreads and listed the company in December 2005 at a market cap of
£33 million GBP.
Capital Spreads had at the time of listing 4,319 accounts with a
turnover of £4.86 million GBP. Today Capital Spreads has over
33,000 live accounts and a turnover of £29 million GBP. Capital
Spreads reached a market capitalization of £175 million GBP during
2008 and still only offers Spread Betting and no CFDs.
SYCAP Group UK Ltd is a result of many years of operating and
developing companies within the financial industry by the current
management team.
2006
SYCAP Group AB was formed to continue the development of CFD and
Spread Betting software that was initiated by SYCAP AB.
SYCAP AB was founded in 1998 by Stefan Willebrand to develop
mechanical trading models and to manage funds. SYCAP AB achieved a
CTA license in the USA during year 2000.
John Rowe who was the owner of London Capital Group Plc
partnered up with Stefan Willebrand during 2003 to continue the
development of trading related models.
During December 2005 Mr. Rowe sold his stake in London Capital
Group while listing the company on the London Stock Exchange.
Mr. Rowe and Mr. Willebrand decided to move the software
development to a separate company and capitalized SYCAP Group
AB.
2007
SYCAP Group AB registered with the Swedish Financial Inspection
for providing currency exchange and launched the first version of
the PRIME Platform™ for this purpose.
During September of 2007 SYCAP Group AB entered into a Joint
Venture with Van der Moolen N.V., a Dutch company listed on the New
York Stock Exchange. Together the companies were to offer trading
of CFDs, Spread Betting and Forex on the PRIME Platform™ through
the UK company VDM Global Markets Ltd as 50 % owners each.
At the end of 2007 SYCAP Group AB converted into a public
Swedish company while conducting a limited share offering selling
approximately 1 % of the Swedish company to a number of smaller
investors to achieve more shareholders.
2008
SYCAP Group AB continued the development of the PRIME Platform™
in order to launch a UK marketing campaign for VDM Global Markets
Ltd while Mr. Rowe and Mr. Willebrand worked to build up the team
that would operate VDM Global Markets Ltd.
2009
VDM Global Markets Ltd launched its first marketing campaign in
February and has since achieved explosive growth through B2B
partnerships and TV advertising in the UK.
During the summer of 2009 the management of VDM Global Markets
Ltd decided to re-brand the company in order to prepare for a
global expansion and settled on the name Gekko Global Markets
Ltd.
During August Mr. Rowe and Mr. Willebrand decided to create
SYCAP Group UK Ltd as a holding company for SYCAP Group AB and
Gekko Global Markets Limited.
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