The consistently strong trading performance across CMC Markets has continued, according to a trading update from the and institutional platform technology solutions provider this Thursday.
As volatility driven by the coronavirus pandemic continues to lessen and brokers across the world publish lacklustre trading volumes in both July and August, CMC Markets said that it continued to see a strong trading performance from the 1st of July 2020 until the 31st of August.
According to the trading update today, net operating income run rate for the two month period has come in only slightly below . Furthermore, client income has continued to be in excess of the same period in the prior year.
Net operating income for CMC Markets to exceed forecasts
In the trading update, the UK-based company highlighted that client income retention has remained particularly strong and that it is well in excess of the guidance of above 80 per cent. The company’s stockbroking business has also continued to perform strongly, the company said.
“As a result, the Board is confident that with the strong underlying performance and diversity of the business, FY 2021 net operating income will of current market consensus,” CMC Markets said in the trading update.
As outlined by the brokerage, the higher revenue performance since the beginning of the financial year has been driven by existing clients increasing their trading activity, as well as new traders flocking to CMC Market’s platform.
As , with COVID-19 bringing heightened volatility to the trading markets, a wave of new traders have entered into the markets, many of them being first-time traders.
The influx of new clients has also resulted in an increase in CMC’s variable operating costs, largely driven by higher client onboarding costs. In order to keep its new clients, as well as attract new users, the CMC Markets Group will continue to focus on investing in its technology.
Be First to Comment