Shares in IG Group Holdings PLC fell sharply March 21 after the company reported net trading revenue of £359.0 million for the nine months to February-end, down from the year-ago £421.3 million.
As of 10:40 a.m. London time, the company's shares were down nearly 8.5%.
The British online trading platform attributed the decline in revenues mainly to the impact of measures imposed by the European Securities and Markets Authority, as well as market volatility and client trading opportunities. In July 2018, the regulator banned marketing, distribution and sale of binary options to retail customers and imposed a limit on such activities with respect to contracts for differences.
Revenue in the U.K. declined year over year to £145.5 million from £185.8 million, so did revenue in the EU, to £56.9 million from £92.6 million.
For the three months to February-end, group revenue came in at £108.0 million, down from £122.1 million in the previous quarter.
IG Group said it expects revenues in the fiscal fourth quarter to still be lower than that of a year before. The company, however, expects its full-year costs to be similar to that in the previous fiscal year, which amounted to £290 million.