Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Trading firm IG says revenue down on new EU rules

Published 04/12/2018, 07:59
Updated 04/12/2018, 07:59
© Reuters.  Trading firm IG says revenue down on new EU rules

© Reuters. Trading firm IG says revenue down on new EU rules

(Reuters) - British online financial trading firm IG Group (L:IGG) predicted a 6-percent fall in trading revenue for the first-half of 2019 on Tuesday, as it suffered from newly-introduced limits on ordinary individuals making highly-leveraged financial bets.

Concerned by losses for some players, regulators have tightened the rules governing online platforms like IG, Plus500 (L:PLUSP) and CMC Markets (L:CMCX), which previously allowed anyone with a bank card to make large, poorly-secured bets on financial markets through their apps and websites.

IG, which started as a spread-betting firm in 1974 with just three employees, said revenue for the four-month period after regulatory limitations came into effect in August was expected to slump 20 percent in the UK and the European Union.

The company said the number of new clients it onboarded in the 4-month period since August had fallen to 14,600 from 18,027 a year earlier.

IG also said its subsidiary in Germany had received a licence from the country's regulator BaFin, allowing the firm to offer financial products across the European Union after Britain leaves the bloc.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.