(Reuters) – IG Group expects to return to revenue growth in the second half of this year after the online trading platform reported a 31% slump in annual earnings due to Europe’s clampdown on high-stakes financial betting by amateur traders.
IG, like rivals Plus500 and CMC Markets, has struggled as regulators tightened rules on platforms which had allowed anyone with a bank card to make highly leveraged bets on markets via easily accessible mobile phone apps.
European - Union - Securities - Watchdog - European
The European Union’s securities watchdog, the European Securities and Markets Authority (ESMA), introduced a ban on the sale of ‘binary’ options to retail customers last July, saying there are still concerns about the risks of the products.
IG’s top bosses said that the regulatory storm would eventually blow over.
Regulations - ESMA - Regulation - June - Felix
“ESMA regulations have come out and instituted. We don’t foresee in ESMA more regulation that will affect us,” June Felix, who was named IG’s first female CEO last year, told Reuters.
“We have prepared exceptionally well and are in constant dialogue with regulators to ensure that we remain compliant,” she added.
Company - Individuals - Investors - Stock - Currency
The mid-cap company, which allows individuals and other non-institutional retail investors to bet on stock, currency and oil market moves, saw pretax profits dive to 194 million pounds ($241 million) for the year ended May 31 from more than...
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