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Wskxw.com is dedicated to providing quality information on the subject of Forex Trading for beginners, and in particular, on the various trading systems, and brokers, and tools.Leverage restrictions begin to take their toll on the online Forex firms
IG Group reports first half results – what did we learn?
By LeapRate
NEW YORK, NY , Jan. 19, 2011 — IG Group, one of the UK and Europe’s largest online trading firms, yesterday announced their half-year


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Leverage restrictions begin to take their toll on the online Forex firms
IG Group reports first half results – what did we learn?
By LeapRate
NEW YORK, NY , Jan. 19, 2011 — IG Group, one of the UK and Europe’s largest online trading firms, yesterday announced their half-year results (to November 30, 2010), shocking the market with a net loss of £80 million. IG Group’s shares in London have traded down about 10% since the announcement.
Driving the loss was a £143 million (non-cash) charge against intangible assets. The charge arose from a deterioration of market conditions in Japan, where IG Group’s FXOnline Japan KK has an approximate 2.5% market share. Following recent (August 2010) regulatory changes in Japan reducing maximum leverage on Forex trading to 50:1, combined with a leverage limit of 10:1 on equity indices as of January 2011, IG Group anticipates that “the run-rate of revenue in Japan will now be roughly half what it was prior to the introduction of the first leverage restriction in August.” Making things worse, this coming August 2011 maximum leverage on Forex in Japan will fall further to 25:1, causing IG Group to “anticipate a further fall in revenue at that time.”


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