TechFinancials better targets the Asia Pacific through new Joint Venture agreement

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Joint Venture agreement

The importance and appeal of Asia and the Asia Pacific area as the most promising market for further expansion of binary options trading is once again brought to the fore through an announced of the formation of a Joint Venture between software developer TechFinancials and Optionfortune Trade Limited, a company registered in Hong Kong, with the aim of running a new B2C binary options trading platform focusing on the Asia Pacific region.

Ever since its formation in 2009, TechFinancials has been providing simplified trading solutions and it has consolidated a strong position in the global market, accounting for 18% of all deposits made to trade Binary Options globally in 2014. In early 2014, TechFinancials began to focus on the Asian market, securing distribution in Japan and China and the Joint Venture announced falls within the same framework and it acquires greater significance for the company’s future since the results it had reported for the first semester of 2015 showed a profound decrease in operating profits, reflecting increase in expenses and some disappointing performance of OptionFair, the binary options brand and main source of revenues for TechFinanials.

According to the Group CEO of TechFinancials, Asaf Lahav, : “The Company is very pleased to establish this Joint Venture with the owners of Optionfortune. We believe this to be a significant transaction, and it is in keeping with our strategy stated at IPO, which is to grow our business into new territories and markets. The Board believes that this JV will strengthen the long-term sustainability and consistency of our growth expectations while generating extra cash flow. Asian markets for binary options have considerable growth potential and we look forward to working with our new partners on this venture.”

Indeed the Joint Venture underlines the resolve of TechFinancials to expand into the Asia Pacific region and it is also in keeping with the company’s strategy to penetrate markets with significant high growth potential. Under the terms of the agreement the new business entity which will be incorporated, will be owned 51% by TechFinancials and 49% by Optionfortune Trade Limited.

According to a relevant press release, the formation of this new entity comes following a highly successful two year partnership, whereby Optionfortune Trade Limited had established a binary options brand in 2013, using TechFinancials’ B2B software. Optionfortune Trade Limited has since seen significant growth in its market, where average monthly trading volume for the calendar year (January 2015 – September 2015) has been US$8.56 million, with average monthly revenues of US$350,000. The new Joint Venture will seek to expand its business activities in the Asia Pacific region, where it has already established a strong trading record, as the market for binary options in the region continues to grow.

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