CMC Markets expects 37% YoY lower CFD and spread-bet revenue in FY 2019

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After announcing a number of changes to its Board earlier today, the global provider of online trading CMC Markets Plc (NYSE:CMC) has issued a trading update for the financial year to 31 March 2019 (FY 2019).

CMC expects to report its Full Year Results for FY 2019 on 6 June 2019.

Overall performance in FY 2019 has been impacted by ESMA’s CFD leverage cap and the reduced client trading activity that followed. The company expects to report 37% YoY lower CFD and spread-betting revenue (c. £110 million for FY 2019), and net operating income of c. £131 million.

The impact of the new ESMA margin rules, however, is showing signs of stabilising. Since the regulator’s new rules, client money has remained strong, and active client and new client numbers have remained stable resulting in the Group having confidence in meeting the consensus FY 2020 outlook. The company stated that ESMA regulations are good for this business and for the industry over the medium to long term.

CMC also noted that is quite confident in their stockbroking business in Australia, which migrated approximately 500,000 stockbroking client accounts as part of their ANZ Bank white label transaction at the end of H1.

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