IG Group Taps Morgan Stanley for First Tranche of £150 Million Repurchase
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IG Group Holdings (LSE: IGG) announced the start of a £75 million share repurchase program, the first part of a £150 million buyback initiative revealed earlier. Morgan Stanley & Co. International Plc will manage this phase, set to run from August 12 to October 31, 2024.
Buyback Program Details
This repurchase plan aims to reduce IG Group's share capital. The authorization, granted at its September 2023 AGM, allows a maximum of 19,990,397 shares to be bought in the first tranche.
The company recently disclosed its fiscal 2024 results, showing a pre-tax profit of £400.8 million—an 11% drop compared to last year—alongside a 7% decline in adjusted earnings. This move comes after a previous £150 million buyback concluded in July 2024, signaling IG’s commitment to capital returns despite facing challenges, such as a drop in active clients.
Leadership Changes
Chris Old now serves as IG's Head of Organic Growth, while Tomas Ausra has transitioned to Head of Marketing at IG Prime. Additionally, Charlie Rozes, IG Group’s CFO, will join BMS Group as CFO & Executive Director starting November 2024.
Saxo Bank, a leading retail FX and CFDs broker based in Copenhagen, has made the strategic decision to cease its monthly reports on client trading volumes. All historical trading volume data has also been removed from the company’s Investor Relations website, marking the end of a decade-long practice.
Since 2014, Saxo Bank has shared monthly trading volumes as part of its commitment to transparency, setting a precedent as the first non-public bank or brokerage to offer such detailed data. The move to halt these reports aligns with the company’s broader exploration of structural changes, including potential plans for an Initial Public Offering (IPO) or outright sale of the business.
Saxo Bank has engaged Goldman Sachs to assist in these efforts, with the primary objective of providing liquidity to its two major external shareholders, China’s Geely Group and Finland’s Mandatum Group, both of whom are looking to exit their investments. This isn't the first time Saxo has explored the public markets; a 2022 IPO attempt via a SPAC merger was eventually abandoned.
The decision to stop reporting trading volumes follows a period of declining activity for the company. In May 2024, Saxo Bank saw a 20% drop in trading volumes, followed by a 4% decrease in June. Core FX trading volumes, in particular, hit a multi-year low, falling to $78.1 billion in June 2024. The company also posted its first semiannual loss in several years during the second half of 2023, with no top-line growth. Saxo Bank has yet to release its financial results for the first half of 2024.
ATFX has introduced a comprehensive Client Funds Insurance policy in partnership with Lloyd's of London, aimed at enhancing the security of client assets. The new policy provides coverage of up to USD 1,000,000 per claimant, reinforcing the broker’s commitment to client protection.
This insurance is available to clients of AT Global Markets Intl. Ltd. and AT Global Markets LLC, offering peace of mind by safeguarding their funds with a reputable underwriter. Lloyd’s of London, renowned for being the oldest and largest insurance market in the world, brings a high level of expertise and credibility to the partnership.
Joe Li, Chairman of ATFX, emphasized the importance of this new initiative, stating, "We are dedicated to providing exceptional trading experiences, prioritizing customer satisfaction alongside cutting-edge technology."
The insurance, branded with the slogan "Your Fund's Security, Our Priority," highlights ATFX's dedication to client safety, ensuring traders can focus on the markets with the confidence that their funds are protected by reliable, comprehensive coverage.
ZERO Markets has secured a sponsorship deal with Wolverhampton Wanderers (Wolves), marking the broker’s first foray into top-tier English football. This collaboration, facilitated by sports marketing agency SportQuake, represents a strategic move for ZERO Markets to broaden its brand exposure within the global sports community.
Under this partnership, ZERO Markets and Wolves will focus on joint content creation and digital marketing initiatives to engage both football fans and trading enthusiasts. Paddy Zhang, CEO of ZERO Markets, expressed enthusiasm about the deal, stating, "Wolves' values of innovation and determination mirror our own, and together we aim to redefine success in both football and trading."
Wolves' History of Financial Partnerships This isn't the first time Wolves has collaborated with financial services firms. The club previously partnered with AstroPay and Trade Nation, and more recently, they signed a deal with fintech company Neo, designating it as their official foreign currency exchange partner.
Matt House, CEO of SportQuake, highlighted the synergy between Wolves and ZERO Markets, citing their shared commitment to innovation as a key reason for the partnership. "Wolves will provide global exposure for ZERO Markets, and we look forward to a successful partnership," House said.
Wolves are known for their unconventional ventures beyond football, having previously launched a record label and an esports brand. This new collaboration continues the club’s trend of exploring innovative brand partnerships.
Football Sponsorships: A Growing Trend Among Brokers
Football, the world’s most popular sport with billions of fans, offers brokers immense global exposure. By sponsoring football teams, brokers like ZERO Markets can reach diverse audiences across multiple markets, aligning well with the international nature of forex and CFD trading.
Last year’s analysis by Finance Magnates showed that football has become the most popular sport among brokers, surpassing other sports like racing, golf, and esports. Recent deals include Millwall’s multi-year contract with fintech MyGuava, cryptocurrency exchange BingX’s training kit sponsorship for Chelsea FC, and QuickBooks' sleeve sponsorship for West Ham United.
These partnerships highlight the growing trend of brokers leveraging football to expand their global reach, with ZERO Markets now joining the ranks.
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