CMC Markets PLC (LSE:CMCX) shares tumbled as the spread better warned that profits this year to will come in well short of expectations as volumes recently have been hit by the market volatility.
After an update in January that said trading had been stable, the last two months have been much more challenging, CMC added, with lower equity volumes and a higher proportion of lower margin institutional trading activity.
As a result, net operating income for the year to end March 2023 is expected to be between £280-£290mln with costs excluding bonuses in the range of £215-£220mln.
CMC added it is continuing with the development of its investing and trading platforms plus the expansion in the institutional business remains on track with a new office, CMC Singapore Invest, to go live over coming months.
A medium-term target of increasing net operating income by 30% over the three years from 2022 remains intact, CMC said.