Plus500 joins Futures Industry Association as US operations expand
Plus500 Ltd (LON:PLUS) has become a primary member of the Futures Industry Association (FIA) in the United States. The membership supports Plus500’s plans to expand its US business, positioning itself within the world’s leading trade organization for futures, options, and centrally cleared derivatives markets.
The FIA boasts a diverse membership base, including clearing firms, exchanges, clearing houses, and trading firms from over 48 countries, along with various professionals serving the industry. Plus500’s entry into this influential association reflects its growing presence and commitment to the futures market in the US.
The move comes as Plus500 continues to execute its global expansion and product plans. The company integrated its US acquisitions and introduced ‘Plus500 Futures’ in the US market. In addition, Plus500 entered the Japanese market with a new trading platform tailored for local retail traders. The UAE market showed promising growth following the regulatory license granted by the Dubai Financial Services Authority (DFSA), and the company also secured a new regulatory license from the Securities Commission of the Bahamas in July 2023.
Since its foray into the US market in 2021 through acquiring Cunningham Commodities LLC, Plus500 has steadily strengthened its foothold in the American futures market.
In the US, the company has already made strides in developing its business-to-business (B2B) and business-to-consumer (B2C) offerings. As part of its operational model, Plus500 provides B2B market infrastructure services to institutional clients in the US futures market. These services leverage Plus500’s status as a full Clearing Firm Member of both the CME Group and the Minneapolis Grain Exchange (MGEX), including brokerage-execution and clearing services.
David Zruia, Plus500 Chief Executive Officer, commented: “We are delighted to have become a member of the FIA, further demonstrating the Group’s continued execution against our strategic roadmap in the US. Our membership of this highly respected, leading global organisation represents another milestone for Plus500 as we harness our differentiated technological capabilities to seize the compelling growth opportunities in the US futures market.”
Plus500, which has a market value of £1.12 billion and has been a top performer on the FTSE All-Share Index in terms of shareholder returns since it went public ten years ago.
Plus500 reported revenues for Q3 2023 at $168 million, down by 14 percent from $194 million in the three months through September 2022. At the bottom line, the spread betting and CFDs broker earned $80.3 million in Q3 2023’s EBITDA, which was also lower by 21 percent from $109 million in the comparable period a year ago.
The London-listed brokerage house is reportedly considering a listing on a U.S. stock exchange following the City watchdog’s plans to shake up the rules companies must follow to list on the London Stock Exchange. According to a report by The Times, the FTSE 250 company is eyeing a potential dual listing in New York as Plus500 executives are unhappy with the current valuation, considering that it could be worth considerably more in the US where valuations for similar firms tend to be higher.