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IG Group shares retreat as European regulator clamps down on CFDs

Published: 22:53 27 Mar 2018 AEDT

Trader scratching head at failing investment
IG shares were down 4.35% to trade at 780p.

IG Group Holdings PLC (LON:IGG) shares retreated on Tuesday after the European regulator tightened the rules for CFD trading operations.

The European Securities and Markets Authority (ESMA) is restricting sales of CFD products as well as limiting leveraged trading.

READ: IG's future uncertain as spread-betters face tough new regulations, say analysts

Europe’s watchdog has also banned the sale of binary option trading services to retail investors.

IG Group, in a stock market statement, noted that the ESMA measures are temporary lasting three months at a time, and, that UK regulator The FCA is expected to consult on permanent measures.

In the statement, the company said: “IG is supportive of the objectives of regulators to improve client outcomes in the industry, and the company supports ESMA in its efforts to enhance consumer protection and achieve harmonisation of regulation across the EU.”

IG shares were down 35.5p or 4.35% to trade at 780p.

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