IG Group says no adverse impact from regulations thus far, but strikes cautionary note about future

Maria Nikolova

None of the recently announced regulatory changes have adversely impacted the business to date, says IG. However, future effect of regulations on the business is hard to predict.

LSE earnings strong ahead of merger and ‘Brexit’

Electronic trading major IG Group Holdings plc (LON:IGG) has thus far seen no negative impact on its business due to the growing amount of new rules concerning the retail leveraged trading industry. The statement was made in a filing with the London Stock Exchange today.

The company added, however, that “although none of the recently announced regulatory changes have adversely impacted the business to date, as previously noted, the nature and timing of potential regulatory changes in the UK and some other key markets for the Group remain uncertain.”

It is therefore difficult to predict what impact, if any, regulatory change may have on the Group this financial year and beyond, IG said.

Shedding some light on performance indicators for the quarter to August 31, 2017, IG said its client numbers in the UK were down in the period compared to the same three months in 2016. But the drop was not attributed to any regulatory changes. In fact, the company said the decline was expected, as the equivalent period in 2016 was particularly strong for new client inflows due to the short-term trading opportunities created by the EU referendum in June 2016.

In June this year, the UK Financial Conduct Authority (FCA) delayed the implementation of the new conduct rules for UK firms that offer CFDs to retail customers. The regulator attributed the delay on the fact that the European Securities and Markets Authority (ESMA) is considering product intervention measures under Article 40 of the Markets in Financial Instruments Regulation (MiFIR). ESMA’s product intervention powers can only come into effect from January 3, 2018 at the earliest.

In July this year, IG outlined a number of key areas where regulators are expressing concern and suggesting the need for remedies. These areas include marketing, bonus offers, etc. IG has not objected to any of the proposals.

With regard to the changes in Germany, where financial supervisory authority BaFin has introduced new rules for the marketing and offering of CFDs to retail clients, IG Group has noted that it is supportive of the measures outlined by BaFin. The company is set to have no compliance issues with regards to the restrictions on CFDs with additional payments obligation, given that it already actively markets its Limited Risk Account in Germany. This type of account is compliant with the new rules and also provides additional ‘by position’ protection.

Read this next

blockdag

Top Crypto Highlights for Q2 2024: BlockDAG’s Astonishing 1120% Growth Compared to Solana’s Surge and Toncoin’s Market Triumph

Explore the latest highlights in cryptocurrency: Solana’s recovery, Toncoin’s record levels, and the rise of BlockDAG’s innovative technology.

Digital Assets

Ripple seeks $10 million penalty citing Terraform fine in SEC case

Ripple Labs wants to reduce the financial penalties proposed by the U.S. Securities and Exchange Commission (SEC) by leveraging recent fines imposed on Terraform Labs.

Digital Assets

Swiss regulator shuts down CoinShares’ partially-owned FlowBank

Switzerland’s financial regulator, FINMA, has closed FlowBank SA and placed it into bankruptcy due to severe breaches of capital requirements and other supervisory laws. This follows a series of enforcement actions against the bank that began in October 2021.

blockdag

Presale Power Players: 5 Crypto Presales Primed for Success in 2024 According to Experts

Unlock the potential of the best presale cryptos available now. See why experts recommend BlockDAG, Bitbot, eTukTuk, 99Bitcoins Token, and ButtChain.

Executive Moves

Paxos axes 65 jobs, cuts headcount to below 300

Stablecoin issuer Paxos has laid off 65 employees, equating to 20% of its staff, despite maintaining a robust financial standing.

Institutional FX

US sanctions trigger major shifts in Russian FX market, says Sergey Romanchuk

The U.S. sanctions imposed on June 12 against the Moscow Exchange and its clearing entity, the National Clearing Center (NCC), are set to cause massive disruptions in the Russian currency market, according to FX industry veteran Sergey Romanchuk.

blockdag

BlockDAG’s X1 Miner App Beta Sparks $49.2M Presale Rise; Uniswap & XRP Whales Getting Involved?

Experience BlockDAG’s meteoric 1120% presale rise, Uniswap’s UNI climbing 18%, and Ripple’s XRP anticipating ETF approval. Explore their latest breakthroughs!

Market News, Tech and Fundamental, Technical Analysis

GBPUSD Technical Analysis Report 13 June, 2024

GBPUSD currency pair can be expected to fall further toward the next support level 1.2700, which has been reversing the price from last month.

Institutional FX

U.S. sanctions halt dollar and euro trading on Moscow Exchange

New U.S. sanctions against Russia have led to the immediate suspension of trading in dollars and euros on the Moscow Exchange (MOEX), the country’s largest exchange group.

<