Taper fears and volatility boost spread betting firm IG’s revenue

 
City A.M. Reporter
SPREAD betting firm IG Group said yesterday its first quarter revenue was up 15 per cent after falling equity markets and fears that central banks would taper stimulus policies enticed investors to trade.

The company, which allows investors to speculate on the future price of securities or baskets of securities, reported revenue of £93.6m for the period 1 June to

16 September, up from £81.5m in the same period in 2012.

Client activity hit its strongest levels early in the period following heavy falls in equity markets on the back of fears of a tapering in US quantitative easing and concerns over the Chinese economy, IG said.

The group, which has operations in 16 countries, said revenue was ahead in most of its businesses, with the exception of Australia, where performance was impacted by subdued consumer sentiment ahead of the recent parliamentary elections and weakness in the Australian dollar.