Shares in spreadbetting firm Plus500 leapt nearly 10 per cent this morning after the firm announced a share buyback programme and assured investors trading had been "stronger" despite a tumultuous few months.
Some $10m (£8m) of shares will be bought back by the London-listed firm, paid for by what chief executive Asaf Elimelech called Plus500's "significant cash resources".
The spreadbetter said it had net cash balances of $191m at the end of May, including $75m it plans to pay to in final and special dividends at the start of July.
Plus500 added that trading since its first quarter update on 26 April "has been stronger and profit margins have been maintained".
In a stockmarket announcement Plus500 added: "This is despite considerably lower levels of volatility as measured by the VIX Index than in the same period of 2016."
Spreadbetting firms were surprised by a regulatory clampdown at the end of last year. Watchdogs across Europe revealed plans that including limiting customers' leverage ratios and banning inducements for new clients.
When the Financial Conduct Authority (FCA) revealed its plans in early December, spreadbetting shares plummeted with Plus500 losing over a quarter of its market cap in one day. Spreadbetting firms are understood to have lobbied hard against the FCA plans which are yet to be finalised.
Today, Plus500 said:
None of the regulatory changes announced in various jurisdictions in which the Company operates has had a material impact on trading performance, albeit we continue to monitor trends closely, and are awaiting the outcome of the FCA consultation which could affect the second half of 2017.