London-based trading provider CMC Markets (LSE: CMCX) has been inducted into the FTSE 250, an index which measures the largest companies on the London Stock Exchange. Global index provider, FTSE Russell has confirmed the news in the latest quarterly index reshuffle, which takes effect from September 21.
CMC had strong underlying performance in the business throughout the year, which was enhanced by increased market activity in the final quarter.
Quarterly changes to the blue-chip index was officially announced on Wednesday evening, whereby firms drop out of and into the index according to their new market valuations. Although the stock has depreciated by over 15 percent from all-time highs it hit earlier in July, but the spread’s closing market value of £900 million helped it comfortably secure promotion.
The FTSE 250 Index is a capitalisation-weighted index, and lists the largest 101st to the 350th publicly quoted companies in the UK market.
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The announcement comes as CMC Markets released its trading update from the most recent two months earlier today.
As previously stated, from July 2020 until the 31st August the company had performed well and revenues across the business has continued to be strong during the two month period. CMC did not give a specific figure for net operating income, but did note that it was slightly below the first quarter of its 2021 fiscal year, with trading activity remaining much higher than the levels seen in the corresponding period of 2019.
CMC is confident its performance will top even the most optimistic broker forecasts, and that it is well in excess of the guidance of above 80 per cent.
“As a result, the Board is confident that with the strong underlying performance and diversity of the business, FY 2021 net operating income will exceed the upper end of current market consensus,” CMC Markets said in the trading update.
CMC Markets saw its shares shine earlier this year as the online trading platform operator doubled its annual net trading revenue in the first quarter, bolstered by the coronavirus-induced volatility.