Cmc Markets Share Discussion Threads

[masurenguy] 18/12/2017 08:36

RNS Number : 5761Z
CMC Markets Plc
18 December 2017

Response to ESMA Proposals

CMC Markets Plc ("CMC") notes the announcement by the European Securities and Markets Authority (ESMA) issued on Friday 15 December, further to announcements made by the Financial Conduct Authority and other European regulators in December 2016 and June 2017. This announcement includes proposals to improve investor protection for retail clients, and ESMA will conduct a brief consultation in January 2018 on the matter.

The proposals include the following:-
1. Prohibit the marketing, distribution or sale to retail clients of binary options.
2. Restrict the marketing, distribution or sale to retail clients of CFDs, including rolling spot forex.

Restrictions on CFDs under review are:

- leverage limits on the opening of a position between 30:1 and 5:1, whose limit will vary according to the volatility of the underlying asset;
- a margin close-out rule;
- negative balance protection to provide a guaranteed limit on client losses;
- a restriction on benefits incentivising trading; and
- a standardised risk warning.

Through its proprietary technology CMC can quickly respond to regulatory change as illustrated with the introduction of negative balance protection in Germany and a limited risk product in the UK this year. Fair client outcomes have always been a focus, with margin close-out and standardised risk warnings already in place throughout the Group. Binary products generated £2.1m of revenues from the UK and Europe in H1 18 and therefore any prohibition on the marketing of binary options to retail clients will be immaterial in a group context. Proposed margin changes are likely to have an impact on how clients trade, although at this stage it is not possible to quantify the impact. The Group has focused on higher value clients and has one of the highest revenue per clients in the industry. This coupled with geographic diversity, growing institutional business and a partnership with ANZ Bank to provide stockbroking services in Australia from September 2018, will help to mitigate any impact from ESMA's proposals.

Whilst these proposed changes may have an impact on the Group, CMC welcomes a consistent approach to regulation, a 'level playing field' and the raising of standards in the industry. The Group's focus on attracting high value and experienced clients and its strong balance sheet, means that CMC is well positioned to take advantage of market opportunities that will arise from these proposals.

[mister md] 23/11/2017 09:18

nice interims

[mister md] 14/11/2017 19:59

No, but in IGG. ;)

[ny boy] 10/11/2017 23:06

Mister MD... i’m Interested in taking a position next week!

Are you in (IMM),by the way.

[mister md] 10/11/2017 20:02

I'm up 44% on this one now ... surprised so little interest in this share

[masurenguy] 28/9/2017 08:15

28 September 2017
CMC Markets Plc

H1 2018 Pre-Close Trading Update.

CMC Markets Plc ("CMC"), a leading global provider of online retail trading, today issues the following Trading Update. Profitability in H1 2018 is significantly higher than the same period in 2017 with both net operating income and revenue per client higher (and marginally higher than H2 2017), driven by increased client volumes. Active CFD / Spreadbet clients for the period are slightly lower than H1 2017 following the short term interest seen around the EU referendum. The strong increase in net operating income in H1 2018 despite the small decline in active clients reaffirms the firm's continuing focus on high-value, experienced clients.

CMC retains its focus on cost discipline and operating costs before variable staff remuneration are broadly unchanged compared to the same period year-on-year. Costs in the second half are expected to increase through investment in key marketing initiatives, and the ongoing implementation of the Group's stockbroking partnership with ANZ Bank in Australia, which remains on track for delivery next year. Regulation remains a key focus for the firm, and despite profitability in H1 2018 being significantly higher than the same period in 2017, the firm remains cautious about the future outlook given the ongoing regulatory uncertainty and the impact, if any, potential changes could have on Group performance.

The results for 6 months ending 30 September 2017 will be announced on Thursday 23 November 2017.

[mister md] 28/9/2017 08:01

Good update.

[masurenguy] 30/8/2017 11:02

Added @148.5p this morning.

[deuchar] 11/8/2017 08:09

Plus 500 up 100 per cent in 6 months and these things are down -bizarre

[mister md] 27/7/2017 09:10

up 30% on my CMCX and will continue holding (both CMCX and IGG) ...

[toyin] 22/6/2017 14:00

www.cityam.com/267156/spreadbetting-split-saxo-bank-walks-away-key-lobby-group

All the best

[masurenguy] 19/6/2017 13:56

Shore Capital downgraded its stance on CMC Markets to 'hold' from 'buy' saying the risk/reward is now more balanced after the shares made a solid recovery from the lows seen in the immediate aftermath of the FCA consultation. Shore, had upgraded the stock to 'buy' back in December following what it deemed to be an overly harsh reaction to the FCA review, noted the shares are up 50% since the upgrade.

It said CMC's first year as a listed company "wasn't the smoothest of introductions", with a profit warning in September, a regulatory bombshell in December and then one of the least volatile periods in markets for the last decade. "We think the company has emerged bruised but is adequately equipped to tackle any near term implications from the FCA's final determination, expected any time in the next six months. The partnership with ANZ for an Australian retail stockbroking platform, announced in March, will help to offset any expected revenue fall in UK leveraged trading. While there is a path to a higher valuation if regulation achieves its ultimate aim of cleaning up the retail leveraged trading industry, removing what CMC CEO Peter Cruddas (correctly) describes as the 'churn and burn' operators, we don't think this will happen overnight."

The brokerage lifted its fair value on the stock to 160p from 150p and said it will re-examine the investment case depending on where the shares settle after the final FCA ruling.

[mustau] 17/6/2017 13:05

Took some of these yesterday and may add a few more in the next few days. A different breed in 2 years if not taken out before.

[longwell] 15/6/2017 07:45

good dividend , markets getting more unstable and regulations will have limited downside due to volume of people taking up spreadbetting. hold and watch grow through dividends and capital growth.
great one to hold with a lot of potential imho

[mister md] 08/6/2017 12:51

yes recovering nicely here, happy to hold

[my retirement fund] 08/6/2017 11:28

Looks primed to break out of its mid term trading range imo on back of this report.

[latifs100] 15/5/2017 22:52

any ideas why going up today

[pj0077] 10/5/2017 15:45

CMCX will relocate to Germany if the FCA over-regulate.Either way, this stock will be back above 200p by Xmas.

[my retirement fund] 10/5/2017 08:17

European German regulators sorted.

[pj0077] 09/5/2017 18:01

Good lad, you know it makes sense

[my retirement fund] 08/5/2017 13:06

OK ive done it

[spagboll] 08/5/2017 12:58

I got some earlier so yeh go on do it. Am waiting for the announcement regarding spreadbetting hoping it will not be as negative as is expected.

[my retirement fund] 04/5/2017 23:53

Really thinking about taking a position here now

[black bird] 23/4/2017 13:29

cmc markets directors buy, rns says revenue up results 6 june almost at bottom of chart 120p

am IN.. [ Note stock oversold.]