Taking advantage of the recent steep price drop in Plus500 Ltd (LON:PLUS) shares, UK investment manager Odey Asset Management LLP has continued to build its stake in the CFD broker.
LeapRate has learned via regulatory filings that Odey acquired another 1.29 million Plus500 shares on Wednesday, spending about £4.8 million (USD $6.1 million) and accounting for nearly half of Plus500’s overall trading volume of 2.65 million shares on the day.
After Odey’s previous Plus500 share purchases on Tuesday, that brings Odey’s overall interest in Plus500 to 22.4%. Odey is Plus500’s largest shareholder, well ahead of Plus500 co-founder Alon Gonen, who after the recent Plus500 secondary offering holds 11.9 million shares, or about 10.3%.
Shares of Plus500 traded down by 28% on Tuesday, after the FCA revealed new rules for Forex and CFD brokers – mainly, the banning of bonus inducement payments to retail traders and limiting leverage on CFD trades to 50x. Shares of other leading FCA regulated online brokers were down even more, with IG Group Holdings plc (LON:IGG) and CMC Markets Plc (LON:CMCX) each down 38% on the day.