Ahead of releasing its full-year results for its 2019 fiscal year, CMC Markets, a , has issued a trading update on its overall performance during the year this Wednesday.
CMC Markets’ 2019 fiscal year ended on the 31st of March 2019. During this time, the overall by the implementation of the European Securities and Markets Authority (ESMA) intervention measures on the 1st of August last year.
These measures, which reduced client trading activity, alongside challenging market conditions in the fourth quarter of 2018, has brought the broker to the expectation that it will report contracts for difference (CFD) and spread-bet revenue of around £110 million for its fiscal 2019.
This figure is lower than that achieved in the prior year by 37 per cent. As , the UK-based firm warned back in September that it forecasted lower annual revenues for its 2019 fiscal year. However, at the time, the company expected a drop of 20 per cent, not 37 per cent.
CMC Markets also expects to report a net operating income of approximately £131 million. The full financial results are scheduled to be released on the 6th of June this year.
CMC Markets Remains Confident in 2020 Outlook
Looking ahead, the statement released today said: “The impact of the new ESMA margin rules, which has resulted in retail clients trading less, utilising more of their cash to fund their margin requirements or needing to deposit more funds with CMC to trade at previous levels, is showing signs of stabilising.
“Since the introduction of the new rules, client money has remained strong, and active client and new client numbers have remained stable resulting in the Group having confidence in meeting the consensus FY 2020 outlook. We believe that the new ESMA regulations are good for this business and for the industry over the medium to long term.”
Be First to Comment