Openmarkets Group Company Profile

Background

Overview

Openmarkets Group Pty Ltd (OMG) is an Australian financial technology company specializing in trading and wealth management solutions. Established in 2012, OMG has developed a suite of technologies and market infrastructure services that provide access to Australian and international equity markets for B2B clients, including fintechs, trading platforms, and investment professionals.

Mission and Vision

OMG's mission is to accelerate access to wealth creation for all Australians, whether they choose to use a financial adviser or manage investments independently. The company envisions building Australia's first wealth ecosystem by offering innovative and accessible financial services.

Primary Area of Focus

OMG focuses on providing comprehensive trading and wealth management solutions, including wholesale execution, clearing and settlement for Australian equity securities, white-label order management systems, options risk management systems, smart portfolio rebalancing technology, and access to live data and API services.

Industry Significance

As one of Australia's largest retail brokers, OMG plays a pivotal role in democratizing wealth creation by offering scalable and efficient trading solutions. The company's innovative approach has positioned it as a significant player in the Australian fintech sector.

Key Strategic Focus

Core Objectives

Expansion of Product and Market Portfolios: OMG aims to drive revenue synergies through strategic mergers and acquisitions, enhancing its product offerings and market reach.

Investment in Innovative Technologies: The company is committed to developing and integrating cutting-edge technologies to connect fintech clients and investment professionals to domestic and international markets.

Specific Areas of Specialization

API-Led Market Infrastructure: OMG specializes in providing direct market access through high-availability, low-latency FIX or REST open APIs for fintechs and institutional brokers.

White-Label Solutions: The company offers white-label order management systems, options risk management systems, and managed accounts, enabling clients to deliver customized services under their own brand.

Key Technologies Utilized

Smart Portfolio Rebalancing Technology: OMG's technology automates and optimizes portfolio rebalancing, enhancing investment efficiency.

Real-Time Margin and Derivatives Pricing Engine: The company's risk management system powers a significant portion of retail derivatives volume in the Australian market.

Primary Markets Targeted

Fintechs and Trading Platforms: OMG provides infrastructure and services to emerging fintech companies and established trading platforms seeking to expand their offerings.

Investment Professionals: The company caters to financial advisers, brokers, and wealth managers requiring robust trading and wealth management solutions.

Financials and Funding

Funding History

In March 2021, OMG secured a $10 million venture round investment, with participation from Investec Emerging Companies and E&P Financial Group.

Recent Funding Rounds

March 2021: $10 million venture round investment.

Notable Investors

Investec Emerging Companies: A division of Investec Group, focusing on early-stage investments in innovative companies.

E&P Financial Group: A diversified financial services firm providing wealth management and investment solutions.

Intended Utilization of Capital

The capital raised is intended to support OMG's growth agenda, including strategic mergers and acquisitions, expansion of product and market portfolios, and investment in innovative technologies to enhance connectivity for fintech clients and investment professionals.

Pipeline Development

Key Pipeline Candidates

OMG is actively pursuing strategic mergers and acquisitions to expand its product offerings and market presence. The company has entered into a definitive agreement to combine with Broad Capital Acquisition Corp. (NASDAQ: BRAC), aiming to become a publicly traded entity listed on the Nasdaq Capital Market.

Stages of Development

Merger Agreement: A definitive agreement has been signed, with the transaction expected to close in the second quarter of 2023, subject to regulatory approvals and customary closing conditions.

Target Conditions

Expansion into International Markets: The merger is expected to facilitate OMG's entry into new markets, including Asia and the U.S., leveraging BRAC's resources and expertise.

Anticipated Milestones

Public Listing: The combined entity, OMGL Holdings Ltd, is expected to be listed on the Nasdaq Capital Market under the ticker "OMGL."

Technological Platform and Innovation

Proprietary Technologies

Smart Portfolio Rebalancing Technology: Automates portfolio adjustments to maintain optimal asset allocation, enhancing investment performance.

Real-Time Margin and Derivatives Pricing Engine: Provides accurate and timely pricing for margin and derivatives, supporting risk management and compliance.

Significant Scientific Methods

Automated Trade Surveillance: OMG has implemented Eventus' Validus platform to monitor all trade activity and orders, ensuring compliance and risk management.

Leadership Team

Executive Profiles

Dan Jowett: CEO of OMG, leading the company's strategic direction and growth initiatives.

Chong Yu: Head of Compliance, overseeing compliance and regulatory affairs.

Key Contributions

Dan Jowett: Instrumental in securing strategic partnerships and driving the company's expansion plans.

Chong Yu: Implemented advanced trade surveillance systems to enhance compliance and risk management.

Competitor Profile

Market Insights and Dynamics

The Australian fintech sector is experiencing rapid growth, with increasing demand for innovative trading and wealth management solutions. OMG's focus on API-led market infrastructure and white-label solutions positions it well to capitalize on this trend.

Competitor Analysis

SelfWealth: An Australian online brokerage offering flat-fee trading and a social investment platform.

Stake: Provides commission-free trading in U.S. stocks for Australian investors.

Strategic Collaborations and Partnerships

OMG's partnership with Eventus to implement the Validus trade surveillance platform enhances its compliance capabilities and supports its growth plans.

Operational Insights

OMG's integrated suite of services, including execution, clearing, settlement, and risk management, offers a comprehensive solution that differentiates it from competitors.

Strategic Opportunities and Future Directions

The planned merger with Broad Capital Acquisition Corp. presents an opportunity for OMG to expand its market presence and access additional resources to fuel its growth.