FXPro shelves IPO plans
(ShareCast News) - FXPro shelved its plans to float on the London Stock Exchange until the regulatory uncertainty affecting the sector had lifted.
The decision to remain in private hands followed the Financial Conduct Authority's new plans to limit the amount of risk that retail investors were allowed to assume through such firms to 50 times the funds they had deposited, Sky reported.
That announcement had led one of its rivals, CMC Markets, to ponder moving its headquarters and contracts for differences operations from London to Germany, Sky reported in December 2016.
BaFin, Germany's financial services watchdog, was also looking to impose curbs on the amount of risk that retail clients could take on.
However, they were described as less draconian than those proposed by the FCA.
IG Group, another veteran UK spread-betting firm hard hit by the risk of a crackdown by the FCA, had already begun talks with BaFin.