A spread betting firm headed by a former co-treasurer of the Tory party is considering moving its headquarters from London to Germany after a crackdown by the City regulator on the sale of financial products.
CMC Markets, founded by Peter Cruddas, has met with the Financial Conduct Authority to discuss the regulator’s plans to tighten rules on contracts for difference.
Big spread betting firms, including IG Group, are concerned by the authority’s plan to cap the leverage of customers’ bets, something the German regulator has stopped short of. CMC, which employs about 300 people in the UK, is due to meet with officials in Germany.
A spokeswoman said: “The board of CMC will consider all options open to the business to ensure that shareholder value is delivered . . . Until CMC has finished discussions with the UK and German regulators as part of the consultation process the board is not in a position to make any comment on the outcome of its review.”
The authority is consulting on its proposals after it found that 82 per cent of customers ended up losing money on CFD trades.
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Shares in the spread betters fells last week, but have rallied. IG shares closed yesterday 35½p higher at 486¼p and CMC gained 5p to 100p.
