CMC Markets, the trading platform owned by Tory peer Lord Cruddas, fired another warning on income today as “challenging” conditions continue to weigh on activity.
In a statement this morning, the firm said quiet markets had continued through August and trading and investing net revenues were down 20 per cent compared to last year as a result.
“August in particular has seen a more challenging environment with markedly lower monetisation of client trading activity due to a higher proportion of lower margin institutional volume,” the firm added.
CMC Markets was among a host of trading platforms to make hay while markets were roiled by the pandemic but has since struggled amid quieter conditions. The firm said it had also suffered from the flight of day traders who poured onto the platform through the so-called meme stock saga.
Shares are trading down nearly 50 per cent over the past year.
The firm added today that while market activity “has the potential to recover” if the status quo lingers on then its income was expected to come in between £250 and £280m.
Client money, assets under administration, and active clients across both the trading and investing businesses “remain robust” with no major change seen through recent weeks, CMC added.
Bosses expect operating costs for the year to come in at £240m.