CMC Markets reiterates commitment to co-operation with regulators on CFD rule changes
CMC Markets expects to see the outcome of the FCA consultation on CFD regulation this summer.
International online retail trading services provider CMC Markets Plc (LON:CMCX) has reiterated its engagement with global regulators on pending changes to CFD rules.
In a filing with the LSE today, CMC Markets noted that it has filed extensive responses to the CFD rules consultations with Germany’s BaFin and the UK Financial Conduct Authority (FCA).
In December 2016, the UK FCA unveiled proposals for new rules for selling ‘contract for difference’ (CFD) products to retail customers. The planned regulations seek to improve standards across the sector and ensure consumers are appropriately protected. Amid the changes envisaged is a leverage cap at 50:1.
The consultation closed on March 7, 2017 and the broker expects to see the outcome this summer.
This is not the first time that CMC Markets stresses its commitment to co-operation with regulatory bodies with regards to proposed changes to the regulation of the CFD sector. In January 2017, CMC Markets’ CEO Peter Cruddas said that “We are engaging fully with our regulatory bodies, and in principle, we are supportive of a clear and consistent regulatory approach that all providers have to follow to ensure client interests are best served”.
Given yesterday’s events with relation to Brexit, it is useful to remind our readers of FinanceFeeds’ report that clarified CMC Markets’ stance on media speculation about the company’s possible change of jurisdiction. In December last year, the company noted that “The board of CMC will consider all options open to the business to ensure that shareholder value is delivered whilst continuing to offer the highest levels of customer protection. Until CMC has finished discussions with the UK and German regulators as part of the consultation process the board is not in a position to make any comment on the outcome of its review.”
CMC Markets has not stated that it is to leave the UK.
Going back to CMC Markets’ current performance, let’s mention that the broker reports progress on its partnership with ANZ, initially announced earlier this month. Under the terms of the deal, CMC will service more than 500,000 ANZ retail stockbroking clients under the ANZ Share Investing (ANZSI) brand. CMC considers the deal as a way to expand its presence in Australia. As a result, gross revenue received from CMC’s stockbroking business is expected to increase by approximately A$40 million.