Lord Cruddas’ CMC Markets on track for new trading platform amid tumultuous pandemic
Spread betting house CMC Markets announced it was on target to set up its own trading platform yesterday morning, after announced assets were “close to record highs”.
CMC has had a dramatic few years, with an initial boom during the pandemic, which resulted in a profit warning last September after a sharp slowdown in trading activity.
The company is headed by former Conservative party co-treasurer Lord Cruddas, who has been looking to split the businesses into two, and already has a strong share trading arm in Australia.
In yesterday’s statement, Lord Peter Cruddas said: “I am pleased with the ongoing trends we’re seeing in client money, and physical share assets in Australia. In addition, the team is on track to launch our new UK investment platform in the first half of the calendar year.”
The firm also said it remained confident that it will hit its net operating income within the range of £250m to £280m for the full year, in line with expectations.
The confident announcement stands in contrast from the firm’s disappointing half-year announcement in November, which saw revenues halved to £128m. This was perceived as a massive blow to Cruddas, who owns more than 60 per cent of the stock.
CMC sells derivatives called spread bets and contracts for difference to punters who place leveraged wagers on the direction of markets.
This type of betting is high risk because most derivatives customers lose money. Regulators around the world have cracked down on derivatives trading to limit amateur losses.
It will announce a full year update on April 8.