CMC Markets Expects Solid FY2020 Revenues, Boosted by COVID-19

CMC Markets has published a trading update for its financial year, ended on the 31st of March 2020, revealing that the company managed to achieve a particularly strong net revenue in the final quarter of its fiscal year.

CMC Markets is a provider of online trading and institutional (B2B) platform technology solutions. According to the trading update, the company posted strong net trading revenue across the group for the 2020 financial year.

In particular, the firm’s contracts for difference (CFD) business generated gross client income of around £241 million. This represents an increase of 11.6 percent, from the gross client income of £216.0 million posted in the 2019 financial year.

The increase in client income was due to a strong underlying performance in the business throughout the year, the company said in the statement. This was boosted further by increased market activity in the final quarter, which was largely driven by the coronavirus pandemic.

According to CMC Markets, this surge in activity in the first three months of 2020 has more than offset the reduced client trading activity, which was the result of the ESMA ESMA European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t European Securities and Markets Authority (ESMA) is an independent Authority of the European Union that is responsible for the safety, security, and stability of the European Unions’ financial system and is charged with protecting the public. The European supervisory authority for the securities sector, ESMA was established on 1 January 2011. The European Securities and Markets Authority is an independent EU authority based in Paris. It aims to contribute to the effectiveness and stability of t Read this Term intervention measures implemented back in August of 2018.

CMC expects 94.2% YoY growth in CFD revenue

Because of this, the Group expects that CFD net trading revenue will be approximately £214 million. This would be almost double the CFD net trading revenue achieved in fiscal 2019, which was £110.2 million.

Commenting on the results, Peter Cruddas, Chief Executive Officer, said in the statement: “... At CMC we have focused rigorously on our strategic priorities and feel that the benefit of this focus has started to come through in our performance this year which demonstrates a step change from where we were 12 months ago."

“... Looking forward, there are many new uncertainties, including how governments, regulators and exchanges will react. Notwithstanding the uncertainty we remain confident in the outlook for 2021 as we progress with our numerous strategic growth initiatives. We’re not reliant on a sustained period of high Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, 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. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, 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. Traders Read this Term in markets, but our well invested platform, technical expertise and diversified offering supports us delivering sustainable results not just now but also in years to come.”