CMC profits to hit £150m as retail traders look to capitalise on volatility
Trading platform CMC Markets said it was expecting a jump in profits in the first half of the year after online traders poured onto its platform to try and profit from volatility that has rocked markets.
The firm, run by Tory peer Lord Cruddas, said in a trading update that net operating income was expected to come in at £153m for the period – up 21 per cent on the same period last year – while net trading revenue was expected to jump 27 per cent to £128m.
Traders have been flooding onto online platforms in a bid to profit from the historic volatility on markets spurred by soaring inflation and waar in Ukraine.
Client leveraged assets under management at CMC finished the period at around £530m, slightly below the record of £560m last year but well above historic levels.
Lord Cruddas said today volatility had sparked a rise in interest from traders in its first half of trading.
“We closed the first six months with a pickup in market volatility and client trading volumes driving an improvement in operating income versus last year,” he said.
The update came as the firm launched a new investment platform CMC Invest, to give retail investors access to non-leveraged trading.
“This move into self-directed investing marks a significant milestone for us, representing a major opportunity for growth and diversification into the non-leveraged market,” he said.
“While it is still in its initial stages of development, as we plan to add further functionality over the coming months, our goal is to provide unrivalled market access to investors through the best technology and lower transactional costs and fees.”