37% Drop on CMC Market Forecasts
The CMC Markets, an online trading service, has issued an update on their overall performance on Wednesday before releasing its full year results for the 2019 fiscal year.
The end of the fiscal year for CMC Markets is on March 31st, 2019. It is at this time that the European Securities and Markets Authority review the overall trading and financial performance of the firm. Their intervention heavily influences future measures that the firm will have to take. Those measures can include reducing their activity in client trading.
The fourth quarter of the 2018 Fiscal Year was challenging for CMC Markets. It has caused the broker to report CFD contracts for difference. They’ve also said as of Wednesday that they have spread-bet revenue of £110 million.
This figure is substantially lower than what the brokerage firm achieved at the same time last year. It’s lower by 37%. Finance Magnates reported that the United Kingdom established firm had already warned that they forecasted lower revenue for 2019. However, at that time they speculated a drop of 20%.
The brokerage firm, CMC Markets, also reported that they’ve netted at approximate of £131 million. All financial reports on the firm will be released on June 6th 2019.
CMC Markets Confident for 2020
The statement released today by CMC Markets stated the following: “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.”
The update post continued on by saying, “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.”