CMC Markets Releases Trading Update for FY 2019 Ahead of Results, Also Made Changes to its Board

Karthik Subramanian

Karthik Subramanian has been a professional trader and fund manager over the last 18 years. He is basically a software developer who made the transition to financial domain around 18 years back as the attractiveness of the financial markets proved too much for him. He lives in Chennai in India along with his wife and son. He began his career as a software developer in 1999 and then gradually moved into the financial industry as he began trading stocks in his pastime. He then moved into the financial markets full time and then shifted his focus to the FX markets due to the liquid nature of these markets. Since then, he has been trading FX diligently and his favourite pair are the EURUSD and EURJPY. Over the last couple of years, he has found blockchain to be of high interest and considering his background in software and finance, he has since assembled a team of highly talented developers who have since worked on a variety of projects like crypto exchanges and blockchain architecturing. Now, he balances his time between trading and commenting on both the FX and crypto markets. He has worked with many publications including FX Street and Finance Magnates, which has helped him gain experience and also recognition across the industry. He loves to write and this passion has helped him to reach out across the FX and crypto industry. Right now, he works on his pet projects in the FX and crypto industry and spends his time writing and managing his blockchain team and helping it to reach higher.

esma

CMC Markets Releases Trading Update for FY 2019 Ahead of Results, Also Made Changes to its Board

April 3, 2019
CMC Markets
CMC Markets

Just ahead of releasing full-year results for FY 2019, CMC Markets has released a trading update on its overall performance during the year. The fiscal year of CMC Market ended on 31st March 2019.

In the update, the company noted that the financial performance of the company was heavily influenced by the implementation of the ESMA intervention measures on 1st August 2018. This measure greatly reduced the client trading activity and challenging market conditions in the fourth quarter of 2018 impacted revenue generation. The company expects CFDs and spread-bet revenue during the fiscal at £110 million which is almost 37 per cent lower compared to previous fiscal. 

However, the company expects the drop in revenue should be around 20 per cent and not 37 per cent in FY 2019. In the statement, the company said:

“The impact of the new ESMA margin rules, which has resulted in retail clients trading less, utilising more of their cash to fund their margin requirements or needing to deposit more funds with CMC to trade at previous levels, is showing signs of stabilising.

“Since the introduction of the new rules, client money has remained strong, and active client and new client numbers have remained stable resulting in the Group having confidence in meeting the consensus FY 2020 outlook. We believe that the new ESMA regulations are good for this business and for the industry over the medium to long term.”

The final full year FY 19 financial results will be declared on 6th June 2019.

Along with the revenue forecast for FY 2019, the company announced a number of changes to its Board of Directors. Company Chief Operating and Financial Officer, Grant Foley resigned from the company after more than six years with the firm. 

Grant Foley, Chief Operating and Financial Officer said:

“Having joined CMC ahead of preparations for the IPO, the business has transformed completely over the six years I have been CFO and COO. Now we have begun to see a stabilisation of client behaviour post ESMA, I feel the business is on a strong footing, and it is time to hand over to someone else to take the business forward on the next leg of its journey.”

The company has appointed Matthew Lewis, Head of Asia Pacific and Canada to the Board. David Fineberg, currently Group Commercial Director, has been appointed Deputy Chief Executive Officer with immediate effect. 

Peter Cruddas, Chief Executive Officer of CMC Markets commented:

“Grant has been an integral part of CMC’s development over the last six years, including the 2016 IPO, and he leaves the Group in a strong position. I wish Grant the very best for the future, and I would like to thank him for doing an excellent job.”

“I am extremely pleased and excited for David in his new role, and I look forward to working alongside him to develop the business over the coming years. His insights and understanding of this business and our markets after 20 years at CMC are second to none, and he thoroughly deserves this new role.”

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