cmc markets

CMC markets shares’ (LON:CMCX) tumbled on Friday after the company issued a trading update for the final quarter of the year.

In the update, the company said that despite an “encouraging start” to q4, it had proved a “challenging” January and February period.

CMC markets said it is continuing to adjust to European Securities and Markets Authority (ESMA) intervention and adapting to changing client behaviour.

Last year, the ESMA implemented legislation that introduced restrictions on CFD and binary options trading, previously a key driver of CMC markets’ business.

Peter Cruddas, Chief Executive Officer commented on the update:

“This is a period of adjustment for CMC and the industry following the implementation of the ESMA rules. While it has been a challenging year for the group, not helped by difficult trading conditions, we remain confident as we improve our understanding of how clients are trading under the new regulations. I continue to believe that the industry will benefit from regulatory change over the medium-term and that CMC is strongly positioned to do so across its business due to its investment in leading technology and strategic diversification through its stockbroking and institutional businesses.”

CMC markets is a UK-based derivatives trader. The company focuses on CFDs, spread betting trades, as well as Forex.

Shares in the UK-listed firm are currently down -16.81% as of 14:49PM (GMT) on the back of the announcement.