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MDS snaps up Trader Dealer

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By Victoria Young
  •  
3 minute read

It will be business as usual for Trader Dealer following its acquisition from Opes Prime.

Online stockbroker Trader Dealer has been saved from embattled parent company Opes Prime, which is in receivership.

MDS Financial Group and Box Red will buy Trader Dealer's business assets, including operating systems and client base.

The deal was viable because most clients had accounts and stock held by Berndale Securities and cash management accounts held by Macquarie and Adelaide Bank.

As a separate entity, Trader Dealer will offer services for equities, options and warrants.

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The stockbroker plans to be able to offer Australian Securities Exchange contracts for difference and futures shortly.

MDS Financial Group chairman Sean Rothsey said the anxious wait was over for Trader Dealer clients who had not been able to trade since the firm was put into receivership.

MDS Financial Group is in negotiation with ASX market participants to execute trades using clearing services for an efficient and seamless return to trading for clients.

"Trader Dealer is a perfect fit for existing MDS clientele who use our market data and trading tools such as the Bourse and Market Analyser," Rothsey said.

MDS Financial Group has formed a joint venture with Noosa-based corporate advisory firm Box Red to develop the online business. MDS holds the majority share holding.

Trader Dealer will operate as a subsidiary of MDS Financial Group headed by Online Broking chief executive David Wylie.

Wylie was formerly IWL retail strategy chairman and ASX responsible executive.

Opes Prime is being investigated by ASIC to determine whether its activities have breached the Corporations Act. 

Administrator Ferrier Hodgson was called in at the end of March when Opes Prime Group directors became aware of cash and stock movement irregularities in a small number of accounts.