(Reuters) – Online trading platform IG Group <IGG.L> on Thursday forecast a 6% fall in half-year revenue from its core markets, as tighter regulations in Europe and Britain on certain high-risk financial products hit demand.
The company and its rivals have had to weather a drop in client numbers over the past year, as regulators in Europe and Britain lobbied and succeeded in getting stricter rules on trading of certain risky products such as contracts for differences (CFDs).
IG Group also said on Thursday it expects net trading revenue to dip to 250 million pounds for the six-month period, from 251 million pounds a year earlier, when it benefited from two months of trading before the new rules took effect.
The company, which expects to return to revenue growth in its fiscal year 2020, said professional clients in the region governed by the European Securities and Markets Authority did not trade as much in the second quarter compared to a year earlier.
(Reporting by Aniruddha Ghosh and Muvija M in Bengaluru; Editing by Sweta Singh)