Currency trading firm FxPro shelves plans to float on stock market in London
Currency trading broker FxPro has shelved plans for a London stock market flotation as financial spread-betting groups brace for a regulatory clampdown.
The group has decided to remain in private hands after the Financial Conduct Authority (FCA) said last month that it may impose stricter rules on firms selling "contract for difference" (CFD) products to retail customers.
FxPro, which has operations in London and Cyprus, is understood to have told proposed non-executive directors that the planned initial public offering (IPO) will no longer take place, according to Sky News.
Spread-betting firms have seen their share price take a hammering on the London market after the FCA said it may tighten rules around CFD products to prevent investors racking up heavy losses.
The financial watchdog also wants to prevent providers from using any form of trading or account opening bonuses or benefits to promote products.
Online CFD trader Plus 500 previously warned that the new FCA rules would result in a "material operational and financial impact" for the company.
It has been reported that CMC Markets is mulling over whether to shift part of its UK-based business to Germany in response to the FCA crackdown.