LeapRate Exclusive… LeapRate has learned via regulatory filings that global investment bank Morgan Stanley (NYSE:MS) has increased its stake in CFD broker Plus500 Ltd (LON:PLUS) to 7.82%, up from 6.5% in mid February and 2.4% as at the end of last year.
Plus500 shares, and those of other leading UK online brokers including IG Group Holdings plc (LON:IGG) and CMC Markets Plc (LON:CMCX), were hit hard late last year following new proposed rules unveiled by UK regulator the FCA, limiting leverage in Forex and CFD trading.
Morgan Stanley now holds, via several investment subsidiaries, a total of 8,984,719 Plus500 shares worth £39.0 million (USD $48 million).
Morgan Stanley is not alone in making a big bet on Plus500, or more generally on a recovery in online trading company shares. We also reported recently on asset management giant BlackRock, Inc. (NYSE:BLK) increasing its position in IG Group to over 9%. And Norwegian central bank Norges has taken a 3% position in CMC Markets.
Plus500 itself recently reported fairly strong financial results for Q4 2016. Recent indications are also that the company continues to strengthen its position in the lucrative UK CFD market, sitting behind only market leader IG Group.