There Is Such a Thing as Too Much Volatility, Online Broker Says
- CMC’s trading revenue surge continues amid pandemic fallout
- No pressure to boost dividends, majority shareholder says
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British online broker CMC Markets Plc’s revenue surged as coronavirus-driven volatility spurred a jump in trading volumes, but the firm’s boss says he’s hoping for a return to more normal times.
“We do not like extreme volatility,” founder and CEO Peter Cruddas said in an interview. “You might think that it’s good for our business, and it is, we do make good money during these extremely volatile periods, but overall we prefer normal volatility.” More stable markets allow the company to better manage its risk and predict future earnings, he explained.