Currency trading firm shelves IPO plans, citing FCA spreadbetting crackdown

William Turvill
Follow William
Fulham v Wigan Athletic - Premier League
FxPro is a former sponsor of Fulham Football Club (Source: Getty)

A currency trading broker has shelved plans for a stock market flotation, citing uncertainty caused by a City watchdog probe into spreadbetting.

FxPro began lining up an initial public offering (IPO) in 2015, but reportedly put the plans on hold last year.

The flotation plans have now been shelved again amid a Financial Conduct Authority (FCA) crackdown on the spreadbetting industry.

Read more: Spreadbetter CMC Markets to consider London HQ move over FCA crackdown

“The FCA consultation paper, published last month, has naturally put a spotlight on the retail trading industry and created a more uncertain regulatory backdrop,” said FxPro in a statement.

“That is evident for all to see in the valuations of firms with a strong exposure to the UK market place. As such, it makes sense for us to wait until the UK regulatory environment is clearer before deciding on our future plans.”

Sky News first reported that FxPro has informed a number of prospective non-executive directors that their appointments will not take place because the company is planning to remain private. Credit Suisse and Morgan Stanley had been appointed to oversee the float.

Read more: Spreadbetters' shares tumble on news of FCA crackdown

The FCA last month revealed plans for stricter rules for firms selling “contract for difference” (CFD) products such as spreadbets for retail customers.

Spreadbetting firms’ shares were badly hit, and CMC Markets is considering moving its headquarters away from London if the FCA pushes ahead with the clampdown.