CMC Markets cuts CFD and spreadbet revenue target, shares fall

Feb 22 (Reuters) - Online trading platform CMC Markets Plc forecast a bigger fall in fourth-quarter revenue from contracts-for-difference (CFD) in the face of tighter rules by European regulators on offering complex financial products to retail clients.

In an unscheduled trading update, CMC Market guided to 25-35 percent fall in quarterly CFD and spreadbet revenue, calling the first two months of 2019 “challenging”. It had earlier forecast a drop of 20 percent.

CFDs give investors exposure to price movements in securities without owning the underlying asset.

Shares of the FTSE 250 company fell sharply in heavy volumes following the target cut and were down 11.1 percent at 104 pence by 1435 GMT.

Reporting by Muvija M in Bengaluru; Editing by Arun Koyyur