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Trading firm IG says revenue down on new EU rules

Trading firm IG says revenue down on new EU rules
FILE PHOTO: Dealers work on the IG Group trading floor in London, Britain June 30, 2015. REUTERS/Neil Hall   -   Copyright  Neil Hall(Reuters)
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(Reuters) – British online financial trading firm IG Group <IGG.L> predicted a 6-percent fall in trading revenue for the first-half of 2019 on Tuesday, as it suffered from newly-introduced limits on ordinary individuals making highly-leveraged financial bets.

Concerned by losses for some players, regulators have tightened the rules governing online platforms like IG, Plus500 <PLUSP.L> and CMC Markets <CMCX.L>, which previously allowed anyone with a bank card to make large, poorly-secured bets on financial markets through their apps and websites.

IG, which started as a spread-betting firm in 1974 with just three employees, said revenue for the four-month period after regulatory limitations came into effect in August was expected to slump 20 percent in the UK and the European Union.

The company said the number of new clients it onboarded in the 4-month period since August had fallen to 14,600 from 18,027 a year earlier.

IG also said its subsidiary in Germany had received a licence from the country’s regulator BaFin, allowing the firm to offer financial products across the European Union after Britain leaves the bloc.

(Reporting by Muvija M and Noor Zainab Hussain in Bengaluru; Editing by Sai Sachin Ravikumar)

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