After the IG Selloff, Brokers Found Many Ways to Say ‘Business as Usual’
By Jonathan Fine
AI summary of the source article
IG Group experienced its worst trading day in nearly a decade after shares dropped up to 27% following downgraded revenue expectations. Management attributed the shortfall to an internal shift in pricing and hedging client flow, which reduced its OTC revenue retention to 70% from its historical 80% average, lowering anticipated Q3 revenue by 14% to £240 million. While initial market contagion briefly hit peers Plus500 and CMC Markets, both firms moved quickly to distance themselves from IG's self-inflicted risk-management issues. Plus500 confirmed it is trading in line with expectations, and CMC Markets CEO Peter Cruddas bought shares, pointing to strong institutional B2B performance.
Why it matters
The selloff demonstrates how internal risk management and hedging adjustments can destabilize broker earnings despite strong customer growth. It also illustrates how competing brokerages leverage B2B diversification and proven risk controls to insulate against peer contagion.
Key facts
- IG expects Q3 revenue to fall 14% year-on-year to £240 million after OTC revenue retention dropped to 70% from its 80% average.
- IG downgraded its 2026 revenue guidance to mid-single-digit growth, down from a previous forecast of 10-15%.
- Rivals Plus500 and CMC Markets quickly recovered after reassuring the market that their risk management frameworks remained sound.