Response to BaFin Announcement regarding CFDs

RNS Number : 3726R

IG Group Holdings plc

08 December 2016

 

08 December 2016

IG GROUP HOLDINGS PLC
Response to BaFin Announcement regarding CFDs

IG Group ("IG", "the Company"), a global leader in online trading, notes today's intended measure issued by BaFin, a supervisor of the Company's activities in Germany, regarding the marketing, distribution and sale of CFDs to retail clients.

The BaFin announcement proposes that the marketing, distribution and sale of CFDs to retail clients in Germany can only be undertaken if the client is not at risk of losing more than the value of their account.

The Company considers the BaFin proposal to be consistent with IG's recent introduction of Limited Risk Accounts, which guarantee that a client cannot incur losses in excess of the amount deposited in their account.

IG firmly believes in robust and proportionate regulatory oversight of the CFD sector in all the markets in which it operates.   The Company has operated and will continue to operate to the highest standards in the industry.

IG will carefully consider the full implications of the BaFin announcement and will be seeking to meet with BaFin before responding to the consultation, in accordance with the timeline provided of 20 January 2017.

For further information, please contact:

IG Group

Kieran McKinney
Head of Investor Relations and Corporate Affairs	020 7573 0026	[e-mail]
FTI Consulting
Neil Doyle / Ed Berry	020 3727 1141 / 1046

IG is a global leader in online trading, providing fast and flexible access to over 10,000 financial markets - including shares, indices, forex, commodities and binaries.

Established in 1974 as the world's first financial spread betting firm, IG's aim is to become the default choice for active traders globally.  It is an award-winning multi-platform trading company, the world's No.1 provider of CFDs* and a global leader in forex, and it now offers an execution-only stockbroking service in the UK, Australia, Ireland, France, Germany, Austria and the Netherlands.

It is a member of the FTSE 250, with offices across Europe, Africa, Asia-Pacific, the Middle East and the US, where it offers limited risk derivatives contracts via the Nadex brand.

* based on revenue excluding FX (from published financial statements, October 2016)

 

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