CMC Markets Regulatory News (CMCX)

7 December 2018

CMC Markets PLC

FCA Consultation

CMC Markets plc, ("CMC" or the "Group"), a leading global provider of online retail trading, notes the publication today of FCA Consultation Papers restricting the sale and distribution of contracts for difference (CFDs), other retail derivative products and binary options (CP 18/37 and CP 18/38).

These measures are the same in substance as the existing European Securities and Markets Authority restrictions, although the FCA are also proposing to apply these rules to other closely substitutable products.

CMC does not offer any other closely substitutable products so this additional measure will have no impact on the Group.

The FCA also plan to consult on a potential ban on the sale of cryptocurrency CFDs to retail clients in Q1 2019. For the six months ended 30 September 2018, revenue generated from this asset class was immaterial so any ban will not have a material impact on the Group.

As previously disclosed, over 40% of the Group's UK and European revenue is generated by elective professional clients, which increases to 50% with the Group's institutional business. The Group also generates 30% of its revenue from outside of Europe.

The Group's strategy of focussing on higher value retail and professional clients, growing its institutional (B2B) business and the increased size and scale of the Australian stockbroking business puts the Group in a strong position going forward.

Enquiries

CMC Markets Plc +44 (0) 20 7170 8200

Grant Foley, Chief Operating and Financial Officer

Media enquiries

Camarco

Geoffrey Pelham-Lane/Ed Gascoigne-Pees/Jennifer Renwick Tel: +44 (0) 20 3757 4994

Notes to Editors 

CMC Markets plc (CMC), whose shares are listed on the London Stock Exchange under the ticker CMCX (LEI: 213800VB75KAZBFH5U07), was established in 1989 and is now one of the world's leading online financial trading businesses. The company serves retail and institutional clients through regulated offices and branches in 14 countries, with a significant presence in the UK, Australia, Germany and Singapore. CMC Markets offers an award-winning, online and mobile trading platform, enabling clients to trade over 10,000 financial instruments across shares, indices, foreign currencies, commodities and treasuries through contracts for difference ("CFDs"), financial spread bets (in the UK and Ireland only) and, in Australia, access stockbroking services. 

More information is available at http://www.cmcmarkets.com/group