The company's stock hits its lowest levels since December 2017
Earlier on Thursday, IG Group announced that the company’s CEO Peter Hetherington is resigning after 24 years with the firm. The news impacted the shares of the company materially.
After the close of the London Stock Exchange, IG Group’s stock is 13 percent lower. A move which opens a second consecutive week of significant losses. After trading as high as around 955 pence per share, the value of a single share of the retail brokerage today is 640 pence.
Question of Timing
Hetherington’s exit comes at the worst possible time for the firm. The ESMA’s new regulatory framework in Europe has been implemented in August, capping Leverage for retail clients at 30:1 for FX.
The limits are even lower for CFDs on indices, commodities, and stocks. The retail brokerage business is suddenly not as attractive for the shareholders of IG.
The resignation of Hetherington comes almost two months after the introduction of the new regulatory framework. He has been with the company for over 24 years, spending the last three as CEO after the resignation of Tim Howkins.
Speaking of the former CEO of IG Group, a video clip from CNBC’s Squawk Box from 2013 is worth watching:
Stock Performance of Listed Brokers
The shares of the big four brokers that are traded publicly have been punished during the last couple of months. Plus500 appears to be the outlier, however, the trend in the company’s stock has clearly been lower since August.
As we can see on the chart below Plus500 is the only company still in the green since the start of 2018. Shares of CMC Markets are lower by 7 percent, IG Group is lower by 12 and GAIN Capital is down 30 percent since January 1st.
Whether or not the share prices of the companies manage to stabilize, depends on certain conditions. The diversification of revenues and the geographical shift will definitely play a role.
Another significant change may happen if the brokers manage to somehow convert retail traders to institutional ones. Proactive solicitation, however, is explicitly forbidden by the European regulators.
In any case, it appears as if the market has been misplacing trust in the ability of retail brokers to conserve revenues after the regulatory changes.
Earlier on Thursday, IG Group announced that the company’s CEO Peter Hetherington is resigning after 24 years with the firm. The news impacted the shares of the company materially.
After the close of the London Stock Exchange, IG Group’s stock is 13 percent lower. A move which opens a second consecutive week of significant losses. After trading as high as around 955 pence per share, the value of a single share of the retail brokerage today is 640 pence.
Question of Timing
Hetherington’s exit comes at the worst possible time for the firm. The ESMA’s new regulatory framework in Europe has been implemented in August, capping Leverage for retail clients at 30:1 for FX.
The limits are even lower for CFDs on indices, commodities, and stocks. The retail brokerage business is suddenly not as attractive for the shareholders of IG.
The resignation of Hetherington comes almost two months after the introduction of the new regulatory framework. He has been with the company for over 24 years, spending the last three as CEO after the resignation of Tim Howkins.
Speaking of the former CEO of IG Group, a video clip from CNBC’s Squawk Box from 2013 is worth watching:
Stock Performance of Listed Brokers
The shares of the big four brokers that are traded publicly have been punished during the last couple of months. Plus500 appears to be the outlier, however, the trend in the company’s stock has clearly been lower since August.
As we can see on the chart below Plus500 is the only company still in the green since the start of 2018. Shares of CMC Markets are lower by 7 percent, IG Group is lower by 12 and GAIN Capital is down 30 percent since January 1st.
Whether or not the share prices of the companies manage to stabilize, depends on certain conditions. The diversification of revenues and the geographical shift will definitely play a role.
Another significant change may happen if the brokers manage to somehow convert retail traders to institutional ones. Proactive solicitation, however, is explicitly forbidden by the European regulators.
In any case, it appears as if the market has been misplacing trust in the ability of retail brokers to conserve revenues after the regulatory changes.
58% of UK Investors Choose Professional Guidance over 'Finfluencers’
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
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#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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