Exclusive: CMC Markets in perfect position to launch deeper into institutional segment

Maria Nikolova

“In terms of pre-tax profit, we are just shy of £50 million this year, so it’s a pretty good place to be launching deeper into the institutional setup”, says Richard Elston, Head of Institutional at CMC Markets.

Leading online financial trading company CMC Markets Plc (LON:CMCX) is in the right spot to push further into the institutional segment, said Richard Elston, Head of Institutional at the company. Mr Elston was speaking at the FinanceFeeds London Cup which took place on July 6, 2017, welcoming 70 senior industry executives at the members-only EIGHT MOORGATE club.

Mr Elston first reminded the audience of the early days of CMC Markets when the company was a retail broker and then mentioned the first steps of the company in doing institutional business back in 1996. He emphasized the huge development the institutional offering of CMC has undergone in the course of these years and stressed the importance of the technology building and development.

“In this day and age it is all about technology. It is all about getting out into the market and position yourself in a technological world which we live in.” – Richard Elston, Head of Institutional, CMC Markets.

Mr Elston then provided more details about the CMC PrimeFX offering and the CFD API product.

“The unique position that we found ourselves in is that we are able to deliver top-tier liquidity both from FX perspective and also both from CFD perspective”, he said.

Next, Mr Elston noted that beyond the API, there is CMC’s white-label offering. “It is the ability for us to white label our services to brokers out there. We have enough partners and we are pleased with the feedback – it is a contemporary platform that empowers the broker. You don’t have to contact us for every funding movement or for any administrative movement that you do on a daily basis”, he explained.

He also stressed the importance of CMC Markets’ deal with ANZ Bank in Australia, calling it historic for the company. Under the terms of the deal, after a transition period, CMC is set to service more than 500,000 ANZ retail stockbroking clients under the ANZ Share Investing (ANZSI) brand. During the transition period, CMC will collaborate with ANZ to provide full integration of the platform with ANZ’s product offering, including margin lending, Internet banking and integrated Grow app.

Mr Elston said that over the past 12 months, CMC Markets had faced some challenges, including regulatory ones – some global, and some in the UK, given the new CFD sector rules drafted by the Financial Conduct Authority.

“We have the ability to be flexible when these challenges come along, especially in a white-label environment where we have to be able to adapt the technology in line with regulatory demands”, Richard Elston, Head of Institutional, CMC Markets.

Adding some financial details and hinting at the further focus of CMC on its institutional business, Mr Elston concluded:

“In terms of pre-tax profit, we are just shy of £50 million this year, so it’s a pretty good place to be launching deeper into the institutional setup.”

Image: Richard Elston, Head of Institutional at CMC Markets, delivers a keynote speech before 70 senior industry executives at FinanceFeeds London Cup.

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