4th Jan 2017 15:37
LONDON (Alliance News) - Currency trading broker FXPro has shelved plans to list in London amid a crackdown by regulators on spread-betting companies, Sky News reported.
In December, the Financial Conduct Authority said contracts-for-difference - which include spread bets and rolling spot foreign exchange products - are complex financial instruments and that, following an increase in the number of firms in the CFD market, it has concerns more retail customers are opening and trading CFD products "that they do not adequately understand".
As a result, the regulator set out a series of measures to tighten regulation on the market. These would include the introduction of standardised risk warnings and mandatory disclosure of profit-loss ratios on client accounts by all providers, in order to better illustrate the risks and historical performances of CFD products.
The news slammed shares in London-listed spread-betters IG Group Holdings PLC, CMC Markets PLC and Plus500 Ltd.
FXPro, Sky said, has now informed a number of prospective non-executive directors their appointments will not go ahead as it has opted to remain in private hands.
http://news.sky.com/story/currency-trading-firm-fxpro-shelves-float-as-fca-crackdown-looms-10717741
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2017 Alliance News Limited. All Rights Reserved.
Related Shares:
Plus500IGCMC Markets