The Locomra Galaxy is not a large one, being just around one-thousandth the size of larger galaxies like the Via Sagittaria and one percent of its parent galaxy Xastrea. It is located just fifty thousand light years away from Xastrea, and is heavilly tidally disrupted by the larger galaxy's gravity, which twisted and ripped apart its shape and creating a number of star streams being thrown out from the galaxy.
Prior to the arrival of the Confederacy of Borealis, there are no native FTL civilizations in the galaxy and there were less than ten sentient civilizations near industrialization. The many warring states of Xastrea had eyed Locomra for expansion, but under the terms of the Xastrean Convention none of those states were allowed to expand in Locomra significantly - namely, past fifty systems. While it is true that many states deviated somewhat from this limit, few states were interested in potentially triggering another Xastrean War over the relatively tiny galaxy and thus generally obeyed the convention.
This was thrown off the balance with the arrival of the Confederacy. With a much more powerful state now at the porch of Xastrea, there was a brief period of panic, but through diplomatic communication the Xastreans managed to convince the Confederacy against large-scale expansion. The Confederacy (specifically, the United Federation of Star Systems) had enough problems with issues in the Ouranir Galaxy and the many other major powers elsewhere in the Aylothn-Lactea Group, and deemed that a backwater dwarf galaxy in the M81 Group was not worth fighting over. Hence, the UFSS became a signatory of the colonization limitation clause, leaving it with rights to a hundred systems (fifty for the UFSS, and fifty for the CoB itself) in Locomra.
The clause, however, could not cover for independent colonizers emerging from either Xastrea or the LMC. Even prior to the confederacy's arrival, many upstart states had been formed in Locomra, but they were generally put down by the convention parties as they were deemed as a threat to the fragile Xastrean balance of power. After a near-miss in the 88,000s, independent colonization in Locomra was banned for Xastreans, and despite the occasional steaders the ban generally was upheld. However, the LMC parties - namely forces defeated in the First Magellanic War - did not care for the balance of power and neither did the CoB or UFSS care enough to stop them yet. Hence, there have been waves upon waves of semi-secret Ysau migration into Locomra, a trend that is beginning to worry the Xastreans.