A coalition of spreadbetting firms is drawing up a code of conduct amid pressure from the City watchdog.
The CFD and FX Association is working to appease the Financial Conduct Authority (FCA), which is planning a crackdown on contracts for difference (CFD) products.
The lobbying group is comprised of companies including CMC Markets, IG Group, City Index owner Gain Capital and Saxo Bank.
The shares CMC and IG have fallen by 40 per cent and 30 per cent respectively since the announcement.
In addition, CMC is considering moving its headquarters from the UK to Germany, where the crackdown was seen as less extreme, depending on the FCA’s final plans for CFDs.
At the beginning of this month, currency trading platform FxPro said it had shelved its plans for a stock market float, citing the FCA consultation paper.
The FCA and CMC declined to comment, while IG, FxPro and City Index have also been asked for comment.