By Charlie Conchie
The trading shop run by Tory peer Lord Peter Cruddas, CMC Markets, today said it had suffered a sharp slump in activity over recent months as “quiet market conditions” failed to excite investors and revive booming interest seen through the pandemic.
The London-listed firm, founded and run by Lord Cruddas in 1989, said trading and investing activity in its first quarter had slumped 15-20 per cent on last year, in line with expectation, and the subdued activity was now lingering into the second quarter.
However, the online platform doubled down on its guidance for the year after a boost in interest income made on the back of rate hikes.
“These conditions have continued into the start of [second quarter], however weaker client activity has been offset by stronger interest income, resulting in overall net operating income tracking at a similar run rate to the same period last year,” CMC said in a statement.
CMC was among a crop of DIY investment platforms to make hay through the pandemic as punters splashed cash on the markets.
Shares in the firm reached their peak in April 2021 but have since cratered over 70 per cent.
In its latest set of full-year numbers, CMC said profits had fallen by 40 per cent as trading activity slowed. The firm blamed in part a drop-off in the memestock mania which saw retail traders pour onto its platform to try and cash in on surging penny stocks.
CMC, which is headquartered in London with hubs in Sydney and Singapore, said today it was angling for growth across its regions and would launch a number of new products for its institutional clients.
“Over the next six months the group is on track to launch cash equities for institutional clients, and OTC options and listed futures across our various platforms which will allow our clients better opportunities to trade and hedge existing portfolio positions,” the firm added.
