London Stock Exchange-listed CMC Markets (LON: CMCX) is debating splitting into two entities. Discussions are still in the early stages, but the Board is considering the respective benefits and risks before making a final decision. Read on for the details.
The move, should it go ahead, will see the company create a leveraged division focused on the spreading business while the non-leveraged unit will consist of new investment products and technology. Both businesses would be listed on the LSE, however, only one would keep the CMC brand.
CMC’s official announcement stated: “The Board intends to undertake an exploratory review to consider the viability of a managed separation of the Group’s non-leveraged and leveraged businesses in the interests of maximizing shareholder value. As these discussions are exploratory at this stage, they may or may not lead to a managed separation of these businesses in due course.”
CMC Markets offers leveraged trading and spread betting in multiple financial jurisdictions. Yet despite a jump in revenue during the global pandemic, the company lowered its revenue expectations for the current financial year, resulting in a significant fall in its share price.
CMC Markets also has plans to launch UK investment D2C and B2B platforms next year. These new trading solutions will offer popular financial products, including stocks and shares. Separately, the company has acquired over 500,000 clients from a large Australian bank, ANZ, with more than £25 billion in total assets.
About CMC Markets
CMC Markets was founded in 1989 has since amassed 80,000+ active clients with annual trading volumes in excess of 64 million. The online trading broker offers more than 11,000 instruments, from global indices and currency pairs to commodities, treasuries and bonds, plus ETFs.
CMC Markets provides a bespoke, web-based terminal that offers a host of user-friendly trading tools. Clients can make use of 115 technical indicators, pattern recognition technology and customisable layouts. Should the brokerage proceed with its plans to split into separate entities, customers can expect further investments in the tools and services available.
With no minimum deposit requirement and a £10,000-funded demo account, new traders can get started with ease. Sign-up today using the link below.