SPREAD-better IG Group’s revenue slide has accelerated since a European crackdown on the market, the firm admitted today.
Restrictions on borrowing, which can massively magnify client losses , were introduced in August. The company expects first-half revenues to be 6% lower than last year in the six months to November, worse than the 5% registered in September.
The firm is looking to side-step the crackdown as more of its UK and EU clients take on “professional” status by meeting stricter criteria on their wealth and the number of trades they place. Professional clients account for 70% of revenues since the new regime came in, but the number of new clients in its European business has slumped 30% to 8200.
Shares eased 7.75p, or 1%, to 600.75p.
Shore Capital’s Paul McGuinness said: “We still regard this as a resilient overall performance for the six months.”
