Weekly Summary: Doo Group’s Restructuring; Why Bank of England Is Wary of AI Valuations

Doo Group appears to be leaving Limassol

Our weekly bulletin starts with an interesting development involving the Cyprus brokerage space. Doo Group’s retail and institutional brokerage arm, Doo Prime, appears to be vacating one of its two offices in Limassol following a series of staff layoffs.

An employee told FinanceMagnates.com that staff had been informed the broker would leave the premises within two weeks. The group confirmed that it is “realigning its operational structure” and expressed appreciation to team members “for their dedication over the years.”

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Retail traders lost £75M at finfluencer-promoted CFD firm

In the regulatory front, the UK’s Financial Conduct Authority (FCA) revealed this week that over 90,000 retail investors lost approximately £75 million at a single firm promoted by online “finfluencers.”

These influencers frequently push unregulated offshore trading schemes, promising unrealistic returns through copy trading, managed accounts, or paid trading tips. The regulator said it continues to combat such activity, having blocked 1,600 websites, removed 50 apps, and targeted more than 1,500 finfluencers.

XTB is considering exiting the Brazilian market

At the same time, brokers in Brazil are facing stringent regulations. XTB is reconsidering its expansion into Brazil less than a year after obtaining regulatory approval, citing challenges linked to protectionist measures in the local brokerage sector.

The Warsaw-listed fintech secured authorization in February but has yet to commence operations, despite initially moving to join Brazil’s list of regulated institutions. XTB said it is “evaluating all potential business options, including the possibility of ceasing further operations in this market.”

Meanwhile, XTB reported weaker third-quarter results amid low market volatility. The company’s consolidated net profit fell 74% year-on-year to PLN 53.2 million, down from PLN 203.8 million in the same quarter of 2024. Revenue also declined 20.1% to PLN 375.8 million, with the drop mainly attributed to lower profitability per CFD lot.

Bank of England warns AI valuations mirror the dot-com era

In the AI space, not everyone is optimistic. The Bank of England has warned that soaring valuations of technology companies linked to artificial intelligence resemble patterns seen during the dot-com era, even as these firms generate substantial revenue.

The central bank has now cautioned that heavy investor concentration in AI-related stocks could leave markets vulnerable if sentiment around the technology shifts.

Alongside its focus on AI-driven market dynamics, the BoE highlighted broader concerns about financial stability, including high-profile US credit defaults and the rapid growth of private credit.

CySEC removes certification registers after scam abuse

In Cyprus, the financial regulator is grappling with a surge in scams. This week, it was forced to suspend public access to its certification registers after discovering that fraudsters were using the personal details of certified professionals to deceive investors.

Certain individuals unlawfully used names and details from their certification registers and published exam results to impersonate legitimate investment professionals and deceive the public.

Executive move: Alaa Kriedy joins Optimal Traders as MENA CEO

Optimal Traders, a relatively new proprietary trading firm, has appointed Alaa Kriedy as CEO for its Middle East and North Africa operations, signaling its intent to accelerate growth in the region.Alaa Kriedy, Source: LinkedIn

Kriedy brings over 20 years of experience in financial services, having led significant initiatives in business development, operational efficiency, and strategic partnerships across the MENA region.

Bybit halts new registrations in Japan

In the crypto space, regulatory hurdles continue to limit growth for some players. Bybit will cease onboarding new users in Japan as of 31 October 2025. The restriction applies to both Japanese residents and nationals, while existing users will continue to have access without any service disruption.

The exchange stated that the decision is part of its proactive approach to comply with local regulations and align with the evolving framework established by Japan’s Financial Services Agency. The exchange emphasized that current customers in Japan will experience no immediate changes to the services they use.

NVIDIA, Nokia stocks jump on $1B AI investment

AI is attracting significant investment and driving gains in related stocks. NVIDIA and Nokia stocks surged after NVIDIA announced a $1 billion strategic investment in the telecom company, coupled with an AI-networking partnership. The jump in share prices highlights investors’ confidence that telecoms will play a central role in the next wave of AI-driven growth.

NVIDIA’s stock rose sharply following a flurry of product announcements at its GTC event, pushing the company’s market capitalization close to $5 trillion. The rally reflects strong demand for AI hardware, including GPUs and accelerators, as investors continue to bet heavily on the company’s leadership in the AI market.

Amazon stock jumps 13%

Lastly, Amazon’s stock surged 13% after the company reported third-quarter earnings that significantly exceeded Wall Street expectations. The firm posted earnings per share of $1.95 on revenue of $180.2 billion, surpassing analyst estimates of $1.58 and $177.8 billion.

Amazon Web Services (AWS) contributed significantly, generating $33 billion in revenue, a 20% year-over-year increase, and marking its fastest growth since 2022. The rally came just days after Amazon announced plans to cut up to 30,000 corporate jobs, a move investors appeared to view positively as a sign of cost discipline.

Amazon is starting a major layoff of up to 30,000 white-collar employees – nearly 10% of its roughly 350,000 corporate workforce – while preparing to release its next quarterly earnings, with Wall Street closely watching the holiday season performance.