Spread betters fall after IG Group revenues drop
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Online trading company IG Group was the worst performing stock in the UK on Thursday morning after it reported a disappointing end to 2016 and warned of further uncertainty amid a broad regulatory clampdown.
Shares in the company, the UK’s largest online retail trading group, were down 4.7 per cent at publication time, to 499p.
Financial regulators across Europe have been tightening rules on the sale of contracts for difference and binary options, with the UK’s Financial Conduct Authority has proposing particularly harsh limits on the money customers can borrow to increase their stakes.
IG said it has so far not seen any impact from the proposed changes, but its falling revenues and warning that the regulatory backdrop remains uncertain “in a number of countries” also hit shares in rival CMC Markets. Its shares in the group were down 2.4 per cent at publication time, to 130p.
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