Financial betting clampdown hits IG Group revenue
The company, like other online trading firms Plus500 Ltd (Stuttgart: P55.SG - news) and CMC Markets Plc (LSE: CMCX.L - news) , has been under scrutiny as global regulators tighten rules on products which allow ordinary retail customers to make high-risk financial bets at high rates of leverage. The company stuck to its guidance that the ESMA measures would hit historic revenue by about 10 percent, saying it was not possible to draw firm conclusions from a one month period as it will take time for retail clients to adapt to the new rules and change their trading behaviour. Online trading platforms have been looking to focus on their professional clients and IG launched an online process in November to enable some retail clients who meet the required criteria to apply to become categorised as an elected professional client. IG Group also said its German unit received a licence from a German regulator to offer financial services to EU clients in the run up to Brexit.
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