CMC Markets Active Clients Grow 13% YoY, No Brexit Disruption Expected
- CMC Markets has released an interim management statement to highlight some operational metrics in Q2.
Online Multi-Asset Multi-Asset Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically Read this Term trading brokerage CMC Markets plc (LON:CMCX) has just released an interim management statement on the company’s operational progress in the second quarter of 2016. The firm has highlighted in its announcement that the performance of the firm is currently in accordance with the expectations of active clients growing by 13 per cent when compared to a year ago.
While client numbers are growing, CMC Markets states that the value of client trades has been lower during the quarter with the run-up to the U.K. referendum damaging investor sentiment. With increased uncertainty a number of traders have chosen to take a wait and see approach therefore reflecting on broad trading activity.
The company has not incurred any losses during the Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term turmoil and does not anticipate that the event will result in any material challenges to the business operations of CMC Markets.
The company highlights that the costs associated with a restructuring of operations in order to continue servicing European clients would not be material. The firm is not explicitly stating whether there will be need for such a restructuring as cross-border passporting is for the time being unchanged.
While the cost base for CMC Markets is likely to be negligible considering the size of the capital base of the firm, smaller companies in the industry could be affected much more. CMC Markets expects to maintain its headquarters in London regardless of the Brexit.
CMC Markets Operational Highlights
The company states that it is continuing to make progress across a broad spectrum of growth pillars that it has previously set out. The German and Australian markets have remained robust for CMC Markets with recent regional surveys underpinning the position of the brokerage in these markets.
The Australian business of the brokerage has seen the firm holding the largest share of high value clients, where CMC Markets holds a 30 per cent market share.
Looking beyond the strongholds, the company highlights that its business in Austria and Poland is in line with expectations, while France and Italy are seeing improvements.
The company has also successfully launched its binary options offering across international markets excluding Singapore and Canada. The company plans to expand the range of instruments offered in the coming months.
Last quarter, CMC Markets also launched its institutional offering which is already seeing some demand and has been receiving positive feedback from clients.
The Chief Executive Officer of CMC Markets, Peter Cruddas, commented on the quarter: ”The Group continues to make progress on its five pillars for growth and we continue to attract high-quality clients through our focus on retention, service and technology.”
“In line with the wider market, volumes were lower leading into the EU referendum as clients traded in smaller sizes. However, clients trade volumes have subsequently increased and improvements in underlying client metrics are very positive. Our full binary launch has been a success and I am very excited about the pipeline of new products. This has been a solid quarter building on the successful listing in February 2016,” Cruddas elaborated.
Online Multi-Asset Multi-Asset Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically Read this Term trading brokerage CMC Markets plc (LON:CMCX) has just released an interim management statement on the company’s operational progress in the second quarter of 2016. The firm has highlighted in its announcement that the performance of the firm is currently in accordance with the expectations of active clients growing by 13 per cent when compared to a year ago.
While client numbers are growing, CMC Markets states that the value of client trades has been lower during the quarter with the run-up to the U.K. referendum damaging investor sentiment. With increased uncertainty a number of traders have chosen to take a wait and see approach therefore reflecting on broad trading activity.
The company has not incurred any losses during the Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term turmoil and does not anticipate that the event will result in any material challenges to the business operations of CMC Markets.
The company highlights that the costs associated with a restructuring of operations in order to continue servicing European clients would not be material. The firm is not explicitly stating whether there will be need for such a restructuring as cross-border passporting is for the time being unchanged.
While the cost base for CMC Markets is likely to be negligible considering the size of the capital base of the firm, smaller companies in the industry could be affected much more. CMC Markets expects to maintain its headquarters in London regardless of the Brexit.
CMC Markets Operational Highlights
The company states that it is continuing to make progress across a broad spectrum of growth pillars that it has previously set out. The German and Australian markets have remained robust for CMC Markets with recent regional surveys underpinning the position of the brokerage in these markets.
The Australian business of the brokerage has seen the firm holding the largest share of high value clients, where CMC Markets holds a 30 per cent market share.
Looking beyond the strongholds, the company highlights that its business in Austria and Poland is in line with expectations, while France and Italy are seeing improvements.
The company has also successfully launched its binary options offering across international markets excluding Singapore and Canada. The company plans to expand the range of instruments offered in the coming months.
Last quarter, CMC Markets also launched its institutional offering which is already seeing some demand and has been receiving positive feedback from clients.
The Chief Executive Officer of CMC Markets, Peter Cruddas, commented on the quarter: ”The Group continues to make progress on its five pillars for growth and we continue to attract high-quality clients through our focus on retention, service and technology.”
“In line with the wider market, volumes were lower leading into the EU referendum as clients traded in smaller sizes. However, clients trade volumes have subsequently increased and improvements in underlying client metrics are very positive. Our full binary launch has been a success and I am very excited about the pipeline of new products. This has been a solid quarter building on the successful listing in February 2016,” Cruddas elaborated.