Low Volatility Squeezes Brokers. CMC Markets' Founder Says It Is "Not Reflected in CMC's Performance"

CMC Markets founder Lord Peter Cruddas said subdued market volatility has made conditions tougher for some rivals but has not hurt CMC's results. He credited growth in its business-to-business (B2B) arm in an interview the company distributed today (Wednesday).

Rival IG Group said on Friday it expects third-quarter revenue about 14% lower at around GBP 240 million, citing weaker retention of client trading revenue in less supportive market conditions. IG also cut its 2026 revenue growth guidance.

London's trading industry is coming home!

Cruddas also gave launch dates for CMC's two bank clients. New Zealand's ASB Bank is due to go live on its platform before the end of 2026 and Australia's Westpac in early 2027. CMC has said the Westpac deal should expand its Australian customer base by about 40%.

A Tougher Backdrop for Peers

Cruddas said volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term has stayed subdued, with the Cboe Volatility Index (VIX) near historically low levels.

"However, that macro headwind is not reflected in CMC's performance," he said.

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CMC raised its outlook in July, when it said net operating income for the year to March 2027 would be at least GBP 550 million, up from GBP 460 million to GBP 480 million. The shares rose 23% to a record high that day. Half-year results are due in November.

Cruddas said in the interview that he had recently bought about GBP 5 million of CMC shares. Regulatory filings show trades totaling 777,389 shares and about GBP 4.85 million on Friday, when he announced plans to invest up to GBP 5 million, and on Monday.

The largest trade, disclosed Tuesday, covered 593,378 shares at prices between 655.4 pence and 689.7 pence, worth roughly GBP 3.7 million. Cruddas said he has not sold a CMC share since the company's 2016 listing.

One Client and a Decade of Retail Sign-Ups

Cruddas said CMC now powers more than 300 B2B Business-to-Business (B2B) Business-to-business (B2B) represents an interaction in which one business makes a commercial transaction with another. B2B also reflect supportive enterprises that offer or exchange elements that businesses need to operate and grow.In essence, B2B encompasses companies focused on selling products or services to other businesses rather than to consumers – Business-to-Consumer (B2C).Ultimately, B2B companies can be a part of any industry. These is a common market in any technology or manufacturin Business-to-business (B2B) represents an interaction in which one business makes a commercial transaction with another. B2B also reflect supportive enterprises that offer or exchange elements that businesses need to operate and grow.In essence, B2B encompasses companies focused on selling products or services to other businesses rather than to consumers – Business-to-Consumer (B2C).Ultimately, B2B companies can be a part of any industry. These is a common market in any technology or manufacturin Read this Term partnerships, a model he said scales in a way the company's own retail business cannot. He gave one example without naming the client.

A single major institutional partner generated an onboarding volume "in a single year that would typically take us a decade to acquire" through retail channels, he said.

CMC's annual report, published in July, described one neobank partnership that raised account openings by 2,400% in under a year, with roughly 70% of the accounts coming from previously untapped markets.

Cruddas said CMC had also signed a new agreement with Revolut UK. Its institutional arm already supplies the contracts for difference that Revolut offers in 29 countries through its Lithuanian entity. He gave no UK launch date.

Integration Work Began in 2024

CMC signed the ASB partnership in November 2024, when it said integration would take 12 to 18 months. For Westpac, signed last September, it estimated about 12 months.

Cruddas said both banks had reviewed the market before choosing CMC, and that the partnerships would add to recurring B2B revenue as they go live.

In June, alongside annual results that showed pre-tax profit up 20% at GBP 101.3 million, CMC said both bank partnerships were scheduled to launch within the next 12 months.