Spread-betters in limbo over crackdown

Spreadbetters face more uncertainty as the regulator delayed its crackdown

Stefan Wermuth/Reuters

Russell Lynch29 June 2017

Spread-betters face another six months of uncertainty after the financial watchdog delayed a regulatory crackdown today.

The Financial Conduct Authority dropped a bomb on the share prices of listed players like IG Group, CMC Markets and Plus500 last December by proposing new rules.

These limit the amount of borrowing their customers can use, which enhances wins and losses.

It was due to publish its final verdict shortly, but has decided to wait until the EU’s watchdog, the European Securities and Markets Authority, publishes its own conclusions on the issue.

The ESMA is also looking at further restrictions not considered by the FCA, such as guaranteed limits on client losses.

The EU regulator is due to bring in new restrictions on the sector by January next year.

The FCA, which is calling for more information from the industry, will bring in its own rules if the new European directives are delayed significantly.

Share price reaction was muted. IG Group fell 3p to 557p, CMC Markets edged up 0.25p to 146.25p, while Plus500 lost 3p to 547.5p.