Trading platform CMC sees higher half-year profit on market volatility - Reuters

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• Summary
• Companies

• Sees interim net operating income ahead of last year
• Market volatility drives client trading activities
• Annual operating costs remain unchanged

Oct 6 (Reuters) - CMC Markets Plc (CMCX.L) said on Thursday it expects its interim profit to be ahead of last year, as volatile stock and foreign exchange markets led investors to throng the online trading platform, especially in August and September.

Stock market volatility as expressed by the Cboe Volatility Index (.VIX) - known as "Wall Street's fear gauge" - climbed to a two-month high in September and volatility in the sterling last week surged to its highest since the Brexit referendum.

The pound has fallen sharply in 2022 despite the Bank of England raising interest rates repeatedly, as the jump in rates across the developed world has unnerved investors and sent them seeking safety in the U.S. dollar. read more

"We closed the first six months with a pickup in market volatility and client trading volumes driving an improvement in operating income versus last year," said Chief Executive Officer Lord Cruddas.

CMC left its operating cost guidance for the full year unchanged after it had raised it in July due to a weakening pound and higher professional fees and software expenses.

CMC, which through its platform enables clients to trade up to 10,000 financial instruments, said it sees leveraged gross client income to be 22% higher in the six months ended Sept. 30, 2022.

The company now expects its half-yearly net operating income to come in at 153 million pounds ($173.44 million), compared with 127 million pounds a year earlier.

($1 = 0.8821 pounds)

Reporting by Sinchita Mitra in Bengaluru; Editing by Sherry Jacob-Phillips and Christopher Cushing

Our Standards: The Thomson Reuters Trust Principles.

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Trading platform CMC sees higher half-year profit on market volatility - Reuters
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