CFD broker Plus500 Ltd (LON:PLUS) has issued a statement in the wake of Friday’s market volatility after the Leave victory was announced in the Brexit referendum.
As with several similar announcements we’ve reported on for other brokers, Plus500 said that Friday’s action had no material adverse effect on the company.
In fact, quite the opposite.
Plus500 stated that it saw record spread revenue recorded as trading volumes were well above normal. The company also had 17,000 new account signups leading to a best-ever 1,600 new trading customers on Friday.
Interestingly, Plus500 also reported that UK clients represented just 15% of the company’s revenues in 2015. Many analysts thought that figure was higher, given Plus500’s success in becoming a Top-5 player in UK CFD and FX trading.
The full statement issued by Plus500 reads as follows:
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Plus500 Ltd.
(“Plus500” or “the Company”)
Statement on impact of EU Referendum
Plus500, a leading online service provider for retail customers to trade CFDs internationally, is pleased to announce the impact of exceptionally volatile trading following the United Kingdom’s Referendum decision to leave the European Union. The market dislocation and extreme volatility has not adversely affected the Group’s financial position. The UK represented 15% of 2015 revenue and we continue to have a diverse international customer base.
The Company’s proprietary risk management system ensures that overall exposures to a single instrument are unlikely to have a material impact on the Company’s financial position. No credit exposure was incurred due to the fact that Plus500’s customers cannot lose more than they deposit. The day’s volatility led to record spreads being recorded.
Friday also resulted in a number of significant records for Plus500: most signups (17,000) and most new customers (1,600).
Trading for the period since the last trading update issued on 18 April has continued to be robust and in line with expectations.