Hong Kong-based online brokerage 2Cube plans to cease operations next month and has sold its 4,600 customer accounts to E*Trade's Hong Kong subsidiary, the two companies said Thursday. A joint venture between JPMorgan and Pacific Century Cyberworks, 2Cube said in a statement that "current market conditions" necessitated the closure, since such conditions prevented 2Cube from providing a "reasonable return to shareholders."
The companies did not say how much E*Trade paid for the customer accounts, although E*Trade said the accounts will immediately boost its earnings and revenue. 2Cube customers have until Jan. 14 to opt out of having their accounts transferred to E*Trade. 2Cube, which will cease operations Jan. 14, will continue to allow customers to conduct trades through its site until Jan. 10.