LeapRate's Daily Forex Industry Newsletter
Join now to receive first access to our EXCLUSIVE reports and updates.
Screenshot of a breaking news alert e-mail from Q2 2017
UK investment manager Odey Asset Management LLP has continued to buy shares of FCA regulated retail forex and CFD broker Plus500 Ltd (LON:PLUS), building its stake as Plus500’s largest shareholder to a more than 23% interest in the company.
Odey began buying Plus500 shares early last week in the wake of Plus500’s 28% share price drop, following revelations that UK financial regulator the FCA was going to tighten rules around CFD trading including a ban on deposit bonus payments to retail traders, and (more importantly) a 50x limit on trading leverage. The FCA’s move also hit hard the shares of other leading UK online brokers including IG Group Holdings plc (LON:IGG), CMC Markets Plc (LON:CMCX), and Playtech PLC (LON:PTEC).
Odey’s latest purchase of Plus500 shares occurred yesterday, December 12, when Odey bought 733,555 PLUS shares for £2.7 million. That brings Odey’s total stake in Plus500 to 26,482,409 shares, or 23.05% of the company.
Since the FCA’s CFD rules announcement last Tuesday, Odey has bought more than 3.6 million Plus500 shares spending about £13.2 million.