Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  IG Group Holdings plc    IGG   GB00B06QFB75

IG GROUP HOLDINGS PLC

(IGG)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

UK watchdog bans Bitcoin-based products for retail investors

10/06/2020 | 12:12pm EST

LONDON, Oct 6 (Reuters) - Britain's financial watchdog said on Tuesday it would ban the sale to retail investors of products tracking the price of cryptoassets like Bitcoin, arguing that most people lost money on them.

The Financial Conduct Authority (FCA) said there was no reliable basis for valuing cryptoassets that underpin derivatives and exchange-traded notes.

The ban, which prompted surprise and anger in the sector, will come into force on Jan. 6, 2021.

Shares in Plus500, IG and CMC fell by between 1% and 3.6% after the FCA published its statement on the ban.

"Many will think it is not necessary - there are already material leverage restrictions related to this form of trading and this appears quite 'nanny state'," lawyers at Ashurst said.

The watchdog had set out proposals for a ban in a public consultation last year, and said on Tuesday the move would save retail investors 53 million pounds ($69 million).

There is a prevalence of market abuse and financial crime, along with extreme volatility in prices, and lack of legitimate need to invest in such products, the FCA said.

"Significant price volatility, combined with the inherent difficulties of valuing cryptoassets reliably, places retail consumers at a high risk of suffering losses from trading crypto-derivatives," said Sheldon Mills, interim executive director for strategy and competition at the FCA.

"We have evidence of this happening on a significant scale."

Global Digital Finance, an industry body that promotes best practices and conduct standards in cryptoassets, said the "drastic" move singled out cryptoassets unfairly.

"This ban kills off what could have been a new investment opportunity for sophisticated retail investors. It also sends a negative signal regarding the UK’s stance on cryptoassets," said Lawrence Wintermeyer, executive co-chair of Global Digital Finance.

The products were popular with young male investors in particular, the FCA said, noting that most respondents to its consultation had opposed a ban, arguing that cryptoassets have intrinsic value and some like Bitcoin are accepted by companies such as Starbucks and Microsoft as a form of payment.

"We remain of the view that the price of cryptoassets is determined by sentiment and speculative behaviour," the FCA said.

($1 = 0.7714 pounds) (Reporting by Huw Jones; Editing by Susan Fenton and Sujata Rao)


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
CMC MARKETS PLC 0.00% 422 Delayed Quote.187.86%
IG GROUP HOLDINGS PLC -1.53% 802 Delayed Quote.15.40%
MICROSOFT CORPORATION 1.78% 213.86 Delayed Quote.33.23%
PLUS500 LTD. -0.88% 1572 Delayed Quote.77.43%
STARBUCKS CORPORATION 1.47% 98.3 Delayed Quote.10.19%
All news about IG GROUP HOLDINGS PLC
11/19Online trading firm CMC posts record income on COVID-19 volatility
RE
11/18IG : hires John Fei as CEO, Greater China to further develop its business in the..
PU
11/09Retail trading hits snags as vaccine news sparks stock scramble
RE
11/02'All eyes on Tuesday' as even risk-hungry retail traders pause
RE
10/30Dow Wraps Up Worst Month Since March
DJ
10/30Dow on Track to Wrap Up Worst Month Since March
DJ
10/30Dow on Track to Wrap Up Worst Month Since March
DJ
10/30Dow on Track to Wrap Up Worst Month Since March
DJ
10/30Dow on Track to Wrap Up Worst Month Since March
DJ
10/30Dow on Track to Wrap Up Worst Month Since March
DJ
More news
Financials
Sales 2021 642 M 858 M 858 M
Net income 2021 219 M 292 M 292 M
Net cash 2021 544 M 727 M 727 M
P/E ratio 2021 14,3x
Yield 2021 5,39%
Capitalization 2 960 M 3 952 M 3 955 M
EV / Sales 2021 3,76x
EV / Sales 2022 3,80x
Nbr of Employees 1 921
Free-Float 99,4%
Chart IG GROUP HOLDINGS PLC
Duration : Period :
IG Group Holdings plc Technical Analysis Chart | IGG | GB00B06QFB75 | MarketScreener
Technical analysis trends IG GROUP HOLDINGS PLC
Short TermMid-TermLong Term
TrendsBullishNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 8
Average target price 868,38 GBX
Last Close Price 802,00 GBX
Spread / Highest target 19,7%
Spread / Average Target 8,28%
Spread / Lowest Target -16,8%
EPS Revisions
Managers
NameTitle
June Yee Felix Chief Executive Officer & Executive Director
Robert Michael McTighe Chairman
Jonathan Mark Noble Chief Operating Officer & Executive Director
Charlie Arthur Rozes Chief Financial Officer & Director
Bridget Elizabeth Messer Executive Director & Chief Commercial Officer
Sector and Competitors
1st jan.Capitalization (M$)
IG GROUP HOLDINGS PLC15.40%3 994
MORGAN STANLEY17.90%109 040
THE GOLDMAN SACHS GROUP, INC.-2.86%82 097
THE CHARLES SCHWAB CORPORATION1.43%81 089
CITIC SECURITIES COMPANY LIMITED16.72%53 490
CSC FINANCIAL CO., LTD.51.79%44 665