Ig Share Discussion Threads

[deanroberthunt] 06/12/2016 18:31

fy dividend was 31.40p, so now a 6.5% yield.

company generated nearly £200m in cash.

[opodio] 06/12/2016 17:54

No Bonus is no "free bets" being allowed under the new advertising rules

The replies to their adverts will decline

Growth will slow

[opodio] 06/12/2016 17:52

We need extra taxes to be imposed on CFD and Spread Bets. I am going to write and suggest it

[temmujin] 06/12/2016 17:46

dont forget spread bet companies collude with some stockbrokers to naked short stocks...that isnt cricket"!

[opodio] 06/12/2016 17:38

Christopher Woolard, the FCA’s director of strategy and competition, said: “We have serious concerns that an increasing number of retail clients are trading in CFD products without an adequate understanding of the risks involved, and as a result can incur rapid, large and unexpected losses.

“We are introducing stricter rules for CFD products to ensure the sector addresses the shortcomings identified and firms make sure that retail clients are aware of the high risks involved in trading these complex products.”

The FCA has been examining the industry since July 2015. In February, it told companies to do more to protect customers from losses after finding that checks on their suitability and warnings about risk were inadequate.




We need a moratorium on all new account openings

Profit warning gonna be delicious when it comes

[ecoover] 06/12/2016 17:31

Brexit risk also if loosing passporting then bye bye igg.

[dlku] 06/12/2016 17:18

Loads more downside on this one

Profits will be in decline

Could be dead money for 2 years

[investment dave] 06/12/2016 17:05

Cmc took a big hit finished on a kowceould Expect more downside

[opodio] 06/12/2016 17:03

this looks finished


more tightening to come


customer growth gonna stall

[markycrispy] 06/12/2016 17:01

They won't stop gambling betting no matter what the warning - bounce big style from here but may see a further dip in the morning - that will be the time to buy for a longer term hold

[bolador] 06/12/2016 16:58

I hope the FCA has not caused spread betters to lose their shirts on IG stock today !

Long haul back up now but quality will out. Guess will close around six end of week.

[temmujin] 06/12/2016 16:53

if they were to shut down the spread bet companies or make it hard for them then the ftse and shares would rocket...how many small caps have been shorted to hell by these CFD vermin...in away i'd like to see them got rid off

[woozle1] 06/12/2016 16:49

This reminds me of the numerous investigations into door step lending. Yes the interest rate are pernicious but better than loan sharks and people who coming looking for repayment with a crow bar. There's normally a FCA investigation, which reaches the above conclusion

Likewise, the FCA or the Gambling Commission, would prefer a regulated market here in London, where investors can get proper redress and companies can be properly regulated, rather than forcing the industry off shore where there is the scope to get shafted.

Also, if the companies are based here, there's jobs and more revenue for the inland revenues. Life is already going to be tough post Brexit; there's no point making it tougher!

W

[undervaluedassets] 06/12/2016 16:45

Much respected and well run.

Will endure and thrive

[temmujin] 06/12/2016 16:34

SHOULD HAVE waited for the price auction at 460p...always goes up after

[tsmith2] 06/12/2016 16:27

Dust will settle tomorrow, expecting a v decent bounce

[brwo349] 06/12/2016 16:25

i'm expecting a strong loola bounce tomorrow

[weemonkey] 06/12/2016 16:22

IG and car boot sales.

Both proud British institutions !!!

[deanroberthunt] 06/12/2016 16:18

down 40% of much a do about nothing!

[woodhawk] 06/12/2016 16:17

It's only a 'proposal'. Been filling my boots below 500p.

[onedb1] 06/12/2016 16:11

I think using the term clamp down is a massively overstated exaggeration. If one reads what the FCA wants to clarify it's a simple acknowledgment of the industry that it needs to be more transparent about the risks with it's inexperienced clients . That by the way do not represent the bulk o revenue . Clearly many are inexperienced but that is not the Cfd's provider fault. The article makes it look like the business will be closed or reduced in size . Not the case . Typical journalist . Always after some sensational headline and hasn't read the actual FCA paper . Much a do about nothing . At least from the FCA paper on this

[weemonkey] 06/12/2016 16:07

IG clients in the main love IG

And IG make majority of money from big players not those FCA is out to protect

[spob] 06/12/2016 15:59

Spread betting

UK watchdog clamps down on spread-betting companies

by: Hannah Murphy, Philip Stafford and Chloe Cornish

FT

The Financial Conduct Authority has proposed a clampdown on trading in contracts for difference (CFDs), spread-betting instruments popular with retail traders, triggering a steep sell-off in the sector’s shares.

The UK financial watchdog’s proposals, sparked by fears that many clients do not understand the risks associated with the products, sent shares in spread betters down 30 per cent when markets opened after the news on Tuesday morning.

The FCA laid out plans to restrict how much risk retail investors can take on with relatively small deposits, known as the margin, calling for lower limits for inexperienced traders in particular.

It also wants spread-betting platforms to provide standardised risk warnings and disclose profit-loss ratios on client accounts, after its own analysis showed that 82 per cent of clients lose money on the products.

CFDs are derivatives that allow investors to gamble on equity price movements without owning the underlying shares, which would be subject to stamp duty.

Punters deposit money with the broker and use it as collateral to trade a much larger amount — sometimes as much as 200 times their deposit — and magnify their positions.

The FCA has proposed setting a limit on this leverage of 25 times for retail investors who have less than 12 months’ active experience in trading CFDs. Leverage for all retail clients would be capped at 50 times, with tougher limits across different assets, according to their risks.

The regulator has “serious concerns” that retail clients trading in the products lacked an “adequate understanding” of the risks involved, according to executive director of strategy and competition Christopher Woolard. “As a result, [they] can incur rapid, large and unexpected losses,” he said.

The move comes as online trading has exploded in popularity over the past decade. The FCA was urged to act in January 2015 after some amateur CFD users were hit with large losses when the Swiss National Bank abandoned a currency peg against the euro.
Lex
CFDs: better not

IG Group’s experience in Japan means the FCA caps could hurt

The regulator said that over the past six years it had identified “instances of poor conduct” across the sector — including companies offering “excessive levels of leverage” to customers. At the beginning of the year it said it had written to all companies offering contracts for difference and raised concerns whether they were doing enough to prevent financial crime.

Analysts at Citi said the move threatened the spread-betting industry’s growth outlook. “This has taken us by surprise — we were not expecting the FCA to propose leverage limits,” they said in a note.

Shares in CMC Markets, which floated at 240p a share in February, fell more than 30 per cent to 128.4p, while shares in IG Group and Plus500 lost 34 per cent and 25 per cent respectively.

Paul McGinnis, analyst at Shore Capital, said he did not anticipate IG Group and CMC Markets, which have a higher average revenue per client, to be as badly affected by the proposed changes as Plus500.

“If you’ve got an existing and experienced base as IG and CMC have I wouldn’t expect it to impact as much as Plus500, who are targeting the more inexperienced clients.”

The Financial Ombudsman, which protects UK consumers, said it had received 79 complaints against spread betters from April to September 2016, 23 per cent of which were upheld in favour of the consumer.

“Generally speaking, the most common complaint themes we see relate to where the consumer says a trade was carried out at the wrong price or that there was a lack of understanding on part of the consumer about the high level of risks involved and how the account operated,” said the Ombudsman’s office.

In response to the announcement, CMC Markets said it “shares a common desire to see a uniform application of the highest standards of conduct across the industry”.

The company said it was focused on “higher value experienced premium clients” with an understanding of the market. As of September 30 2016, 93 per cent of its net operating income came from CFD and spread-betting revenue, at £70.9m of a total £75.5m six-month net operating income.

“CMC recognises that in its consultation paper the FCA is endeavouring to ensure that any regulation is delivered in a balanced fashion and looks forward to working closely with the FCA over the coming months,” it said.

IG Group, the UK’s biggest spread better, said “certain of the FCA proposals could enhance client outcomes”. However, it also pointed out that the proposals did not “appear to directly apply to firms operating from outside the UK”. These include a number of Cyprus-based investment companies such as Iron FX Global Ltd and Depaho Ltd.

[rl34870] 06/12/2016 15:47

Fear and greed at play.... reminds me of when I was on a seesaw as a kid.