Crypto Demand Driven by Facebook's Libra and G20 Scrutiny, Says CMC Markets

Ricardo Esteves

Ricardo Esteves has seen business and economics through many lenses. He joined the Financial Services Industry in 2009, and has been a financial journalist since 2011. He holds a degree in Business Administration and has experience producing real-time news, from both buy-side and sell-side, as well as for retail traders, brokers and service providers. Esteves' work has appeared in a variety of online publications including FX Street and FinanceFeeds.

g20 scrutiny

Crypto Demand Driven by Facebook’s Libra and G20 Scrutiny, Says CMC Markets

July 19, 2019
G20 scrutiny
CMC Markets

CMC Markets has announced an increase in client demand for cryptocurrencies as clients look to gain exposure using derivatives especially since mid-May 2019. The trend may be driven by Facebook’s Libra project and G20 scrutiny of the asset class, according to the global leader in spread betting and contracts for difference (CFD).

This latest move towards cryptocurrencies coincides with the recent launch of three bespoke cryptocurrency index baskets at CMC Markets, which complement the 12 individual coins which can also be traded by clients. The new indices allow clients to gain exposure to a bundle of different coins while keeping order minimums and trading costs low. CMC Markets has full control over composition and provides absolute transparency in terms of pricing.

‘All Crypto Index’, ‘Major Crypto Index’ and ‘Emerging Crypto Index’ are available for trading since late June 2019.

David Fineberg, Deputy Chief Executive Officer, commented:

“Cryptocurrencies are catching the attention of traders who may have traditionally been focused on equity indices or fiat currencies. Our proprietary Next Generation trading platform ensures that we can easily cater to client demand with innovative products like our new range of cryptocurrency indices and we will continue to ensure we are offering access to instruments which are most appealing for today’s trading community.”

CMC Markets has recently lowered the margins for professional clients across all their original cryptocurrencies as well as spreads for both retail and professional clients across all their original cryptocurrencies.

Just ahead of releasing full-year results for FY 2019, CMC Markets announced a trading update on its overall performance, having noted a great reduction in client trading activity and challenging market conditions in the fourth quarter of 2018 heavily influenced by the implementation of the ESMA intervention measures on 1st August 2018. This measure has made a negative impact on revenue generation: down by 37 percent YoY at £110 million.

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