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IG, Plus500 take new Australia CFD regulations in stride
StockMarketWire.com
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Contracts for difference brokers IG and Plus500 both said that new trading regulations introduced in Australia wouldn't impact their profit expectations for the year.
The Australian Securities and Investments Commission (ASIC) introduced new measures taking effect from 29 March including leverage limits, negative balance protections and standardised risk warnings.
Both company said the changes were broadly consistent with those proposed by ASIC in an initial consultation.
Plus500 said the impact of the changes was already incorporated in the compiled analysts' consensus forecasts for its 2021 financial year.
'The company is already compliant in most of the areas covered by the proposed regulation and we will further adapt our business model where additional changes are required,' Plus500 chief executive David Zruia said.
'These changes, which are similar in spirit and effect to the regulatory changes implemented in Europe in 2018, act to bring further stability and uniformity to global industry standards.'
IG reiterated that the measures wouldn't change its revenue growth target in core markets of 3-5% over the medium term, and an incremental £100 million of revenue by the end of the 2022 financial year for its significant opportunities portfolio.
'IG has a strong track record of working constructively with its regulators and adapting to regulatory change,' the company said.
'The group's continued ability to adapt to the pace and direction of evolving regulation is a long-term success factor.'
At 1:06pm:
(LON:IGG) Ig Group Holdings PLC share price was +6.25p at 779.25p
(LON:PLUS) Plus500 LTD share price was +36.5p at 1646.5p
Story provided by StockMarketWire.com
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