|Bid||1.1800 x 260000|
|Ask||1.2380 x 250000|
|Day's Range||1.1600 - 1.1600|
|52 Week Range||0.8670 - 1.8360|
|Beta (3Y Monthly)||0.33|
|PE Ratio (TTM)||7.84|
|Forward Dividend & Yield||0.02 (1.97%)|
|1y Target Est||N/A|
The profit warning dragged down shares in Britain's biggest online trading firms IG Group and Plus500 Ltd. Regulators are tightening rules on products that allow anyone with a bank card to make highly leveraged bets on financial markets through apps and online platforms. CMC Markets said it expected net operating income of 131 million pounds ($172.17 million) for the year to March 31, compared with 187.1 million pounds a year before.
The statement came just hours after Britain's Financial Conduct Authority said the European Securities and Markets Authority's temporary curbs on contracts-for-difference (CFD) will become part of the UK domestic law when it leaves the EU on March 29. CMC expects its quarterly CFD and spreadbet revenue to fall 25-35 percent compared with a prior forecast of a 20 percent drop, it said in an unscheduled trading update on Friday. Shares of CMC touched a two-year low, falling over 20 percent to 93.2 pence by 1457 GMT after the company called the first two of 2019 "challenging".
The company - headed by Peter Cruddas, one of the City of London's most prominent supporters of Britain's exit from the European Union - said retail client activity remained steady with client money remaining at similar levels to the first half despite the regulatory clamp-down. "After the first full quarter following the introduction of the ESMA (European Securities and Markets Authority) measures, we now have a better understanding of changing client behaviour and are adapting our model accordingly," Cruddas said in a statement. FTSE 250 firm CMC and its rivals have been struggling as regulators in European Union and Britain tighten rules on sale of products that earlier let retail clients make risky bets.
Shares in CMC Markets (CMCX.L) lost a fifth of their value after it warned that curbs on client trading will hit full year income harder than expected, the latest blow to London's online trading firms that have faced scrutiny from global regulators. CMC and its rivals, such as IG (IGG.L), have been in focus as regulators tighten rules on products which allowed anyone with a bank card to make highly-leveraged bets on financial markets via apps and online platforms. CMC, headed by Peter Cruddas, one of the City of London's most prominent supporters of Britain's exit from the European Union, said on Tuesday that its second quarter had also been hurt by sustained low market volatility.