Good afternoon all,
I would like to draw your attention to an article on the matter; https://www.bloomberg.com/news/articles/2017-12-18/stock-derivative-brokers-plunge-as-europe-eyes-cfd-crackdown
It has indeed affected share prices of IG Group (LON:IGG), CMC Markets (LON:CMCX), Plus500 (LON:PLUS) and similar companies (drops in the range 8-12% at time of writing), although not as much as I would have expected.
Do you feel the changes are fully priced in, or is a greater drop in share price to come if these proposals become law? Do you believe that some brokers are more at risk than others (perhaps more reliant on high leverage)?
I think that the discussion about gambling and ethics has been done, so perhaps we do not need to revisit that in this thread.
FCA Report into UK CFD market released this morning.
https://www.investegate.co.uk/financial-conduct/rns/fca-publishes-findings-of-review-of-cfd-market/201801100700284545B/
On a cursory read through, the published document is quite critical of the conduct of market players although lacking specific detail on who the worst culprits are or remedies/actions to be taken. It does identify one unnamed player as being singled out for immediate action to be taken - as and when they’re identified likely to take a hit and in the meantime a source of speculation.
Gus.
