Source - SMW
Brokerage IG Group said third-quarter revenues fell by more than a tenth as a regulatory clampdown on derivative products continued to stifle new client growth. 
 
For the three months ended 28 February, group revenue fell 12% to £108m from a year earlier as total number of new OTC leveraged clients grew just 1% to 84,200 for the quarter as a result regulatory measures, which came into effect last year.
 
Reported UK and EU revenue slipped 22% and 39%, with both segments suffering a 19% dip in new client growth from a year earlier.   

The group's new subsidiary in the USA, IG US, and its new client facing subsidiary in Germany, IG Europe, both launched operations at the end of January.  Spectrum, the Group's MTF, was expected to launch before the end of the financial year, the company said. 

  As previously communicated, the company continues to 'expect that its revenue in FY19 will be lower than in FY18,' IG said.      

'The Company's cost guidance for FY19 remains unchanged with total operating costs expected to be at a similar level to the £290 million operating costs in FY18.'

  'The Board reiterates that the Company expects to maintain the 43.2p per share annual dividend until the Group's earnings allow the Company to resume progressive dividends.'