IG Group forecasts net trading revenue of £250m in H1 FY20

Maria Nikolova

Net trading revenue in H1 FY20 is expected to be around £250 million, compared with £251 million in the equivalent period of the prior year.

Electronic trading major IG Group Holdings plc (LON:IGG) has earlier today provided an update on its revenue for the first half of its FY20 financial year ahead of entering its close period.

The company expects net trading revenue in H1 FY20 to be approximately £250 million, compared with £251 million in the equivalent period of the prior year. The brokerage notes that H1 FY19 benefitted from two months of trading prior to the ESMA product intervention measures coming into effect.

Revenue in the Group’s core markets in H1 FY20 is expected to be around £210 million, 6% lower than in the same period of the prior year. IG notes that it has continued to build the size and quality of the active client base in its core markets, which is the key driver of revenue growth in the medium term.

The core business served, on average, 78,500 OTC leveraged clients per quarter in its core markets in H1 FY20, 4% higher than the quarterly average in Q2-Q4 FY19. The reduction in revenue in these markets, the company explains, reflects the prior year period including two months of trading prior to the implementation of the ESMA measures, and the lower level of trading by ESMA region Professional clients in Q2 FY20 compared with a strong Q2 FY19.

Revenue in the businesses identified as significant opportunities is expected to be around £40 million in H1 FY20, £12 million higher than in the same period of the prior year, driven by continued strong performance in Japan and in Emerging Markets.

In mid-October IG Europe, the Group’s client-facing subsidiary in Germany, started offering its clients turbo24s, which are traded on the Group’s multi-lateral trading facility, Spectrum. IG says the initial uptake has been promising and around 700 clients have traded turbo24s since the product’s launch.

IG is scheduled to announce its H1 FY20 financial results on January 21, 2020.

In terms of recent developments concerning IG’s US business, let’s note the massive management changes which FinanceFeeds has reported. You can read the full report here.

Read this next

Digital Assets

Paxos opens R&D center in Israel to focus on transaction signing and crypto custody security

“Paxos is looking to expand its team in Israel in 2023 and beyond, giving engineers the opportunity to work on cutting-edge financial products and shape the future of the global economy.”

Executive Moves

Stash appoints Liza Landsman as CEO to further grow investing app

Stash is an investing and banking app with over 2 million active subscribers. Its subscription plans start at just $3 a month, and offer a range of products including investing, banking, education, and advice.

Institutional FX

Invast Global ramps up its offering with 10 soft commodity CFDs

Sydney-based prime-of-prime provider Invast Global has expanded its offering with the addition of ten soft commodity CFDs, which increases their index and commodity CFD offering to 35 instruments.

Retail FX

FF Simple and Smart Trades says Goodbye to CySEC authorization

The Cyprus Securities and Exchange Commission (CySEC) confirmed that it has wholly withdrawn the Cyprus Investment Firm (CIF) licenses of FF Simple and Smart Trades Investment Services Ltd.

Crypto Insider

Shining the Light in Crypto’s Dark Places

Something changed in regulators’ minds after the November crash of the FTX crypto exchange.

Executive Moves

Financial Commission Adds Sam Low to Dispute Resolution Committee

The Financial Commission (FinaCom PLC), a dispute resolution service that caters to the financial services industry, has appointed Sam Low as the newest member of its Dispute Resolution Committee (DRC).

Digital Assets, Uncategorized

De-facto owner of Bithumb exchange arrested in South Korea

South Korean prosecutors have arrested Kang Jong-Hyun, the anonymous chairman and owner of the country’s largest cryptocurrency exchange, Bithumb, on charges of embezzlement and stock manipulation.

Retail FX

Interactive Brokers volumes snap three-month losing streak

Electronic brokerage firm Interactive Brokers LLC (NASDAQ:IBKR) said its trading volumes rose in January, an indication that investor confidence in the financial markets is rebounding after having been fairly mixed over the past few months.

Digital Assets

VVF invests $5 million in Everscale, a potential Layer 2 solution for Venom blockchain

“For us, this is a strategic investment aimed at the technological development of projects and teams around technologies that we focus on and actively develop. In particular, we are talking about the Venom blockchain project and its ecosystem, which is planned to be launched soon and for which Everscale is a potential Layer 2 solution.”

<