CMC Markets Plc is likely to consider shifting its headquarters, as well as other London-based contract for difference operations, to Germany before the U.K.'s Financial Conduct Authority's leveraged bet clampdown, Sky News reported Dec. 13, citing "an insider."
The shift will be accompanied by a significant number of job moves, the report added, but any decision will not be taken until the regulator makes a decision on the new rules in 2017.
Proposed guidelines for the market set out by German regulator Bafin would not impose leverage limits or significant marketing or distribution restrictions, according to the report. One source said the contrasts between the two countries' approaches resulted in "a regulatory arbitrage that all firms operating in the contract for difference sector would need to study closely."
IG Group Ltd. CEO Peter Hetherington reportedly visited Germany to hold talks with Bafin regarding the matter. Hetherington reportedly encouraged clients to protest the FCA's proposals, saying they would be required to deposit up to 10x more money with the company to be able to trade with it.