CMC Markets says client activity in third quarter eased compared to earlier part of fiscal
LONDON (UK) – Online trading platform CMC Markets announced on Wednesday that its client activity in Q-3 eased when compared with earlier in the fiscal at a time when market volatility amid the coronavirus crisis was at its zenith since the 2008 world economic crisis.
Apart from CMC, other industry players such as IG and Plus500 have also witnessed profits surging driven by major macroeconomic events such as the pandemic, the US presidential election and uncertainty over a Brexit trade agreement.
“We wouldn’t necessarily expect this heightened levels of volatility to continue and we don’t plan for the future based on these elevated levels,” Deputy Chief Executive Officer David Fineberg said.
The market frenzy has come down as major nations began inoculating their populations and it is reflected in the CBOE Volatility Index, which has remained at levels much lower than a spurt in October.
CMC pointed to a series of projects in the pipeline that are expected to drive new revenue streams.
“The company had a very good underlying profitability prior to these elevated levels of market activity, so we are very confident and positive about the future,” Fineberg said.