LeapRate Exclusive… LeapRate has learned from industry sources that leading UK spreadbetting broker IG Group Holdings plc (LON:IGG) is looking to buy forex brokers and/or their client lists in the wake of yesterday’s heavy losses suffered by many in the industry.
IG itself reported £30 million in Swiss Franc trading related trading losses with clients. A large amount for sure, but not all that significant in the grand scheme of things for IG – according to IG’s last results presentation in July 2014 they held over £400 million in cash reserves. IG did £370 million in revenue and £195 million in pretax profit in its most recent fiscal year (ended May 31, 2014). So again, £30 million is a lot of money but not something to be too concerned about.
Essentially, IG is looking to acquire the client list of brokers which are unable to meet their regulatory capital requirements. The first official FCA regulated broker to declare itself insolvent was Alpari UK.
We’ll keep tabs on this story, and all the Swiss Franc volatility fallout, as it develops.