Invast Global, an institutional brokerage based in Australia, has changed its name to 26 Degrees Global Markets.
Invast Financial Services Pty Ltd, an Australian company, has announced a name change to 26 Degrees. This change is based on the significant 26th degree of latitude that crosses Australia and the Indian Ocean before meeting South Africa, where humans have their origins.
The legal name of the company will remain Invast Financial Services Pty Ltd; at least for the time being. Invast is a subsidiary of Japanese investment firm Inv Inc (TYO:7338).
Invast and 26 Degrees have gone through a rebranding process as a way to gain a greater share of the Prime Brokerage market. This industry is estimated to be worth approximately 20 billion dollars. And it has become more and more divided in the past five years.
The laws of BASEL III/IV have caused a decrease in the number of global players. Through their rebranding, Invast and 26 Degrees hope to capture some of this market and become more competitive.
Decrease in INV Inc Profits After Purchase of GMO-Z.com UK Operations
The company Invast / 26 Degrees has reported a decrease in profits and cash outflows. This has coincided with a drop in the parent company’s INV Inc’s share price to a new 52-week minimum. Figures for the year ending March 31, 2023 show that the company had operating cash outflows of negative ¥976 million (USD $7.0 million), and its cash reserves had decreased by 28% when compared to the figures from the previous year. Invast / 26 Degrees contributes around 45% of INV Inc’s total sales, according to results taken from the nine months of 2023. The market value of INV Inc as a whole has now dropped to a low of ¥4.38 billion, which is equal to USD $31 million.
Invast has been investing in expanding its reach in other countries. In late 2022, Invast purchased the UK operations of Japanese internet company GMO, known as GMO-Z.com. They are leading the charge for EU operations based out of Cyprus, which is home to many Forex and CFD brokers.
Invast’s longtime CEO and now CEO of 26 Degrees, Gavin White, said:
The prime brokerage global market is in a state of flux. This has highlighted the strong position of prime broking independents such as 26 Degrees to step up and support these underserviced market segments.
We are excited about this opportunity and have made the strategic decision to retire the Invast Global brand and focus 26 Degrees on institutional clients. We’d predicted this shift, and this repositioning future proofs our business to continue to thrive in response to the changing regulatory and operating environments we are seeing unfold.
With the collapse of a number of international banks and the resulting headwinds, we have bolstered our relationships with Tier 1 investment banks including, JP Morgan, Deutsche Bank, NatWest and Morgan Stanley.
As some Prime Brokers have chosen to step away from the prime broking space over the past year, our ability to continue to expand and diversify our panel of Prime Broker relationships shows commitment to the industry and also the esteem with which our business is held by the Tier 1 investment banks.
26 Degrees is seizing the opportunity that this shift in Prime Services presents and we are challenging the dominant model in our industry. We are very excited to be modern pioneers of the independent model, providing accessible prime solutions and are stepping up our presence globally as a prime partner of choice.
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