CMC Says Market Volatility in September Boosts Trading Volumes

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Dealers work at their desks as screens display market data on CMC Markets in London, Britain January 30, 2019. REUTERS / Dylan Martinez / File Photo

October 7 (Reuters) – Online trading platform CMC Markets Plc (CMCX.L) reported a pickup in customer activity in September on Thursday, as the Evergrande debt crisis in China and inflation concerns have fueled market volatility and boosted trading volumes.

Global stocks have retreated in recent weeks after months of recovery, amid concerns over property developer China Evergrande (3333.HK) and rising inflation, pushing the CBOE volatility index (.VIX), or the Wall Street fear gauge at four months. high.

“We closed the first six months (of 2021) with a resumption of market volatility and client transaction volumes following a more moderate environment since the start of the year,” said Peter Cruddas, CEO of CMC .

CMC rival Plus500 Ltd (PLUSP.L) raised its annual forecast again on Monday, saying it saw new positive momentum in the third quarter.

CMC also maintained its annual profit outlook of £ 250 million to £ 280 million ($ 340 million to $ 380 million), which it slashed last month due to moderate volatility. Read more

He said active customers in the first half of the year were slightly lower than last year’s levels.

First half operating costs, excluding variable compensation, are expected to be around 84 million pounds, down from 79 million pounds a year ago.

($ 1 = 0.7363 pounds)

Reporting by Aby Jose Koilparambil and Muvija M in Bengaluru; Editing by Rashmi Aich

Our Standards: Thomson Reuters Trust Principles.


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