CFO Charlie Rozes buys IG Group shares in aftermath of meme stocks humiliation

Rick Steves

Charlie Rozes may be buying IG stock in a move to signal confidence in the retail broker as other top executives did before him. Only the future will tell if those £30,980 were well invested. 

IG Group, one of the hardest-hit brokers of the r/ WallStreetBets boom, has seen its own Chief Financial Officer acquiring 4,000 ordinary shares for an aggregate value of £30,980. Charlie Rozes was appointed CFO at IG Group in June 2020 amid Paul Mainwaring’s intention to retire.

While it is quite common to see top management buying IG Group shares – Chief Executive Officer June Felix bought 6,300 shares for an aggregate value of £49,745 and IG Group Chairman Mike McTighe acquired 3,100 shares for an aggregate value of £25,665, both in January 2021 – one takes note when watching such deal happening in the aftermath of one the biggest humiliations in the history of IG Group.

In January, CEO June Felix and Chairman Mike McTighe bought the stock in a moment of panic selling after the company agreed to buy Chicago-based online brokerage Tastytrade Inc. for more than $1 billion, which was seen as a very risky bet. Felix and McTighe’s move signaled confidence in the deal and the future of IG Group.

The r/WallStreetBets rush has forced many brokers to take actions that many retail traders found illegal or unethical, to say the least. IG Group was one of those trading firms: it suspended all account opening for new clients following the chaos of last Friday’s outage and temporarily suspended new trading on GameStop and AMC Entertainment.

IG chief executive June Felix’s statement accompanying the announcement of restrictions said: “We fundamentally believe in empowering our clients and enabling them to trade what they want, when they want, how they want. This decision has been entirely motivated by our desire to ensure our platform and services remain fully operational for existing clients, as we prioritize giving you the best service we can”.

“This has caused a significant increase in trading volumes and demands on our platform. As a result of this, some clients have experienced disruption to service. This has fallen short of the high standards we set ourselves and the service you deserve. For those clients who have experienced disruption, I would like to offer you my sincere apologies, and assure you we are addressing these issues as a matter of urgency”, Felix added. The decision only demonstrates that the company’s b-book execution model is not able to cope with even minor stock trading volatility.

 

Read this next

Digital Assets

Bitcoin hits fresh record high amid massive short squeeze

Bitcoin has surged to record highs against both the euro and the pound, hitting €60,447 and £51,736 respectively on Coinbase. The primary cryptocurrency has seen an almost 7% increase in the past 24 hours.

Digital Assets

US court rules crypto trades as securities in Coinbase case

A US court ruled that trading crypto assets on platforms like Coinbase constitutes securities transactions.

Market News

Weekly Data: Oil and Gold: Brief Review before the NFP

This preview of weekly data looks at USOIL and XAUUSD where economic data coming up later this week are the main market drivers for the near short-term outlook.

Institutional FX

FXSpotStream reports lower volumes for February 2024

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for February 2024, which moved lower on a monthly basis.

Fundamental Analysis

Global FX Market Summary: EUR, USD, Gold March 4th,2024

US Dollar Weakness: The US Dollar (USD) is currently struggling to gain strength due to a combination of factors.

Technical Analysis

Bitcoin Technical Analysis Report 4 March, 2024

Bitcoin cryptocurrency can be expected to rise further toward the next resistance level 69000.00 (former multiyear high from January)

Opinion

Finding Opportunity in Challenge: Why New Regulations Offer a Chance For Business to Get on Top of Data Management

The combination of CESOP, PSD3 and the PSR, has put businesses under new pressures. In this engaging article, André Casterman, Senior Advisor at Intix provides invaluable guidance on how companies can stay ahead of the curve.

Institutional FX

Finalto launches Prime of Prime offering on LSEG’s FX Matching venue

“By combining our expertise in Prime of Prime services with LSEG’s robust trading platform, we aim to empower clients with the tools and resources needed to navigate the FX market with confidence.”

Digital Assets

Tether’s USDT stablecoin nears 100 billion in circulating supply

USDT, the world’s largest stablecoin, has reached close to 100 billion in circulating supply, currently sitting at around 99.5 billion. Its market capitalization, which reached over $100 billion at one point, is calculated by multiplying the supply by the price.

<