Abstract:Further, monthly active clients across CMC businesses remained similar to the levels of the first half of the fiscal year.
The number of clients in the quarter remained closer to H1 levels.
The group is expecting to generate up to £280 million in revenue in FY22.
CMC Markets (LSE: CMCX) released a trading update of its performance between October and December, which is the third quarter of the ongoing fiscal. It highlighted that client money and asset under administration on both of its leveraged and non-leveraged businesses remain close to record highs.
In the first six months of FY2022, from April 2021 to March 2022, the operating income of CMC dropped by 45 percent, while the pre-tax profits declined 74 percent. Though the number of leveraged clients in the period slipped by 9 percent, the non-leveraged active clients strengthened by 10 percent.
Business Moves
Additionally, CMC is considering completely separating its leveraged and non-leveraged businesses for ‘maximizing shareholder value’. Talks for the move have already started, but they are still in the early stages.
Moreover, the latest trading update revealed that the trading company delivered sustained performance across both leveraged and non-leveraged operations in Q3. In addition, it has continued to invest in the development of its UK non-leveraged platform.
“I am pleased with the ongoing trends we're seeing in client money and physical share assets in Australia. In addition, the team is on track to launch our new UK investment platform in the first half of the calendar year,” said Lord Cruddas, the CEO of CMC Markets.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
Wednesday's major data releases and macroeconomic events are expected to cause volatility to increase after another day of erratic trading in the financial markets. The Spring Budget for the UK will be released, and January Retail Sales figures for January will be made available by Eurostat. ADP Employment Change for February and January JOLTS Job Openings will be discussed later in the session on the US economic docket.
Major currency pairings are still trading in familiar ranges early on Tuesday after the erratic trading on Monday. The US economic docket for the American session will include the factory orders data for January and the ISM Services PMI survey for February. Final updates to the February PMI for the US, Germany, the UK, and the EU will also be released by S&P.
Weekend trading has gained great popularity in recent years due to the rise of online and mobile trading platforms that provide retail investors easy access to markets outside of regular working hours. For traders with Monday-Friday, 9-to-5 jobs, trading on weekends allows them to be active in markets at convenient times.
West Texas Intermediate (WTI) oil price pauses its two-day winning streak but is anticipated to conclude the week on a positive note, trading near $77.00 per barrel during the Asian session on Friday.