CMC Markets Allocates $30 Million to Buy Back Company’s Shares

CMC Markets, one of the longest-standing financial brokers from London, considers repurchasing the excess shares from the market to boost revenue for the future. According to the announcement on the 2nd of March, the broker expects to launch a buyback program to return shares worth $30 million to the company. However, the program is not expected to drop anytime soon as it is still pending regulatory approval.

London-based CMC Markets is placed easily among the most prestigious firms in the financial markets. Founded in 1989, the firm has managed to maintain relevance and grow its business for more than three decades so far. This broker currently offers more than 10,000 different assets comprising various shares, indexes, bonds, commodities and more. The broker’s listing in the London and Sydney Stock Exchanges and approval from some of the reputed regulators have put it in the top tier in the business. If you prefer to learn more about why this broker is best for business, read this thorough and unbiased CMC Markets broker review.

Reportedly, this new decision to buy back shares was taken by the CMC committee to fortify its capital position. This excess capital is set to be returned to the shareholders by buying the ordinary shares back from them. According to reports from the broker, this is a standard procedure to balance the market for its shares, and more information will follow as to how to implement the program as soon as the firm gets the approval. 

This decision could have been fuelled by the firm’s decision to split the business into leveraged and non-leveraged businesses. In such a case, the leveraged division would take on the role of expanding the business, and the non-leveraged division would deal with development, technology and products. The firm is looking into making fundamental changes following a steep fall in the expected revenue for 2022. According to Finance Magnets, the firm’s revenue for this fiscal year dropped from $330 million and is currently situated between $250 to $280million.

Such an established name in the market is currently facing some hard times in the market. The reason for this could be the advent of many new startups, attractive benefits and a felt migration of investors to the new digital assets known as cryptocurrencies. The crypto market comes across as a profitable venture for large and small-scale investors alike. Even popular firms like JP Morgan have expressed their interest to explore the opportunities of the cryptocurrency market. So, we can hope that CMC Markets might bring in some changes to the outlook of cryptocurrency trading as well. Recently, the Finnish crypto exchange LocalBitcoins also relaxed its Bitcoin only rule to add some altcoins to the list.

Scott Cook

Scott Cook got into crypto world since 2010. He has worked as a news writer for three years in some of the foremost publications. He recently joined our team as a crypto news writer. He regularly contributes latest happenings of crypto industry. In addition to that, he is very good at technical analysis.

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