CMC Markets PLC (LSE:CMCX) told investors it has begun an exploratory review into a possible break-up into two separate businesses.
The company, in a statement, said that it may split off its contracts-for-difference (CFD) operations, labelled as the ‘leveraged’ business, from its growing investment platform and business-to-business operations.
CMC is to explore whether a managed separation can enhance shareholder value. The review is present at an early stage and is expected to complete by June.
The review comes after CMC expanded significantly in September, when its prior ‘white label’ deal with ANZ expired and led to CMC directly acquiring from ANZ more than 500,000 share investing accounts, with over £25bn of assets.
That deal saw the group’s total client base rise to around 1mln between the two units, with client assets of £40bn.
CMC earlier this year outlined a plan to launch two new investment platforms to offer investment products, physical shares, tax wrappers and third-party funds. One version as direct-to-consumer, the other will be a business-to-business.