CMC Markets issued a short trading update this morning, outlining the main developments for the company just before its close period on the 1st of April 2017. The foreign exchange, CFDs and spread betting brokerage outlined that it continued on-boarding clients throughout the year.
The brokerage is stating that it actively participated in the FCA’s consultation on the upcoming changes to the retail broking industry in the UK. CMC is expecting the results from the regulator during the summer. The company also replied to the German regulator BaFin, a consultation which closed in January.
Revenues of CMC Markets increased in the second half of the year, however overall the company marked a year-on-year decline for the full year. The broker’s net operating income remained in line in the first half of the year with FY 2017 net operating income expected to be below FY 2016.
The net operating income and costs are set to remain broadly in line with the first half of the fiscal year.
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The company also states that it is on track to delivering on its partnership with ANZ. The firm is working on hiring key project staff and initiating technological development work. CMC Markets is expecting over 500,000 additional retail stockbroking clients to the company’s Australian base, which is currently about 50,000.
CMC Markets CEO Peter Cruddas on Brexit
Having been an active proponent of Brexit, the CEO of CMC Markets, Peter Cruddas, highlighted the triggering on Article 50 on his LinkedIn profile.
“The triggering of article 50 is the beginning of our divorce from the EU. There are many obstacles as to the relationship we will have with our EU neighbours over the coming two years, including a number of prominent remainers who will be working against the Country’s interests to keep us in the EU or at least inside the single market,” he elaborates in a statement.
Cruddas was major donor to the Vote Leave campaign with an active position after the results of the referendum, stating that the UK’s separation from the EU must not go against the electorate’s wishes.
“The EU referendum was the biggest democratic process in our history and the message was clear: “Vote Leave take back control.” That moment has now arrived and it should be full steam ahead to a new and bright future as an independent trading nation. I am proud to have played my part,” Cruddas explains.