IG Group

Last updated

IG Group Holdings plc
FormerlyIG Group Holdings Limited (2003–2005)
Company type Public limited company
Industry Financial services
Founded1974
Headquarters London, England, United Kingdom
Key people
Services
  • OTC
  • EDT
  • Stock trading
RevenueIncrease2.svg £1,023.4 million (2023) [1]
Decrease2.svg £438.5 million (2023) [1]
Decrease2.svg £365.0 million (2023) [1]
Number of employees
2,665 (2022) [1]
Subsidiaries
  • DailyFX
  • tastytrade
  • tastylive
  • Spectrum Markets
  • Raydius
  • BrightPool
Website www.iggroup.com
Footnotes /references
[2] [3]

IG Group Holdings plc, trading as IG Group, is a United Kingdom-based online trading provider, offering access to spread betting and CFD trading, which allow traders to bet on the direction of equities, bonds and currencies without owning the underlying assets. [4] [5]

Contents

Established in 1974 by Stuart Wheeler, the company is based in London and employs 1,950 staff. [6]

As of 2021, it had a market value of £2.9 billion and offered trading in 17,000 investment markets. IG is regulated by the Financial Conduct Authority (FCA), the UK's financial authority body. [7] [8] [9] [10] It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. [11]

History

Founding and early years (1974– 2000)

IG Group, founded as IG Index (Investors Gold Index), was founded in 1974 by British financier Stuart Wheeler. [12] IG Index was launched as the first spread betting company. [13] Rather than buying physical gold, the company allowed investors to trade gold prices. [14]

In July 2000, IG Group was formed as a parent company of IG Index and shares first began to be traded on the London Stock Exchange. [15]

Expansion (2001– 2010)

In 2002, IG Group entered the international market for the first time by expanding its business to Australia. [16]

In 2003, private equity firm CVC Capital Partners backed a management buyout of IG Group for a total of £143 million. [17] In April 2005, IG Group stock was brought back to the market valuing the company at £1.3 billion, and CVC sold off 15.1 million IG Group shares worth £58 million. [18]

In 2007, IG Group entered the United States market for the first time by purchasing HedgeStreet, a digital marketplace allowing investors to trade financial derivatives online, for £2.9 million. [19] In June 2009, the company was renamed to Nadex. [20]

In September 2008, IG Group expanded into Japan by purchasing private online exchange trading firm FXOnline for £112 million. [21]

In 2010, IG Index, IG Group's spread betting firm, was hit with a claim for €25 million by three former clients of defunct Scottish trading firm Echelon Wealth Management for unspecified losses. [22]

Further development (2011–present)

In July 2011, IG Group shut down its sports betting service extrabet after they could not find a buyer. [23] The service was shuttered due to its sales shrinking down to 2.5%, which was half its sales from the year prior. [24] The closure cost IG Group 5.3 million pounds in charges to the company. [25]

In September 2014, the company launched its own online stockbroking platform offering 4,500 stocks. [26]

In January 2015, the Swiss National Bank announced it was abandoning the cap of the swiss franc, and roughly a few hundred IG customers were negatively financially impacted. [27] IG customers incurred losses of £18.4 million after it happened, and customers who lost money considered taking legal action against IG Group. [28] In October 2015, the U.K.’s ombudsman ruled that IG Group was to compensate customers who lost money. [29]

In September 2016, IG Group acquired the foreign exchange trading news and research portal DailyFX from FXCM for $40 million. [30] Later, in December, Peter Hetheringon, the CEO of the company, criticized the Financial Conduct Authority in the UK after it announced new measures to overhaul the industry, publicly blaming the regulator for weakness in some aspects of implementation and its lack of understanding of what the proposed changes could bring. [31]

In January 2017, IG Group withdrew its binary options "sprints" betting product to new customers. [32] The decision came after the company lost £1bn in value after the Financial Conduct Authority revealed new measures on spread betting. [33]

In April 2017, IG Group partnered with BlackRock to launch IG Smart Portfolio, which includes model investment portfolios and asset allocation guidance from BlackRock. [34] This move marked the first time IG joined the field of wealth management. [35]

In February 2019, IG Group launched a new subsidiary IG US, which offers foreign exchange trading. [36]

In March 2021, FinanceFeeds and Financial Magnates reported that IG Group's system, supposedly accustomed to low volatility periods, faced frequent outages at the time of higher-than-usual trade volumes. [37] [38] Such crashes left clients unable to control the positions, leading to loss of funds. According to FinanceFeeds, during the January 2021 outage, IG Group provided no customer support (up to not answering the phone calls) but immediately reacted to request for commentary to protect its public image and deny the issues raised by the clients. [39]

IG Group acquired Chicago-based online brokerage tastytrade in January 2021 for $1 billion, a trading platform catering to individual investors. [40] Tastytrade was co-founded in 2011 by Tom Sosnoff, an entrepreneur and options trader, who also founded thinkorswim, a brokerage firm that was acquired by TD Ameritrade for $606 million in 2009, and Dough, Inc. [41] [42] In January 2017 subsidiary tastyworks was launched as a brokerage arm of tastytrade. [43] In February 2023, tastyworks then rebranded to tastytrade. [44]

In December 2021, IG brokered a deal for the sale of North American Derivatives Exchange (Nadex) and a 39% stake in Small Exchange Inc to Foris DAX Markets Inc, which trades as Crypto.com, completing the $216 million sale in March 2022. [45] Nadex is a U.S. derivatives exchange regulated by the Commodity Futures Trading Commission encompassing short term binary options. [46]

ESG Investing

In 2019, IG partnered with Teach First to train 16 teachers in STEM subjects (Science, Technology, Engineering and Mathematics). This partnership was extended to create a £2 million fund supporting children in disadvantaged areas, specifically affected by the negative impacts of the Covid-19 pandemic on the education system. [47] IG Group launched its environmental, social, and governance (ESG) strategy, Brighter Future, in 2020. [48]

IG's Brighter Future Fund launched in early 2020 at the start of the Covid-19 pandemic, focusing on the education and development of young people irrespective of race, gender or socioeconomic background. [49]

Senior management

Following his tenure as Chief Financial Officer, Tim Hawkins was appointed CEO in October 2006, retiring 9 years later in 2015. [50] Following the departure of Tim Howkins, Peter Hetherington became CEO in October 2015, having started at the company as a graduate trainee in January 1994. He later stepped down in September 2018. [51] In October 2018, IG Group appointed June Felix as CEO. [52] Felix served as a non-executive director for three years before joining the board. [53] After Felix resigned due to ill-health, Breon Corcoran was appointed CEO in December 2023. [54]

Operations

IG Group is headquartered in London. [55] The company operates out of the United States, Europe, Australia, Singapore, South Africa, Switzerland, Japan, and Dubai, with 18 sales offices across the globe. [56] [57]

IG Group offers leveraged and investment products to its customers but has different products depending on region as countries have varying regulations. [58]

In European countries, IG Group offers customers turbo warrants [58] In the United States, through its acquisition of tastytrade, the company offers options, futures, and crypto trading for individual investors. [59]

Sponsorship

During its history, IG Group signed some notable sponsorship deals:

See also

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References

  1. 1 2 3 4 "Annual Report 2023" (PDF). IG Group. Retrieved 13 February 2024.
  2. ↑ "IG Group Holdings PLC overview - Find and update company information - GOV.UK". Companies House . 25 February 2003. Retrieved 5 September 2023.
  3. ↑ "Terms and Agreements". IG Group. Retrieved 5 September 2023.
  4. ↑ "Online Summary 2022". Brand and reputation, IG annual report. 17 March 2022.
  5. ↑ Ben Martin (25 April 2020). "IG Group boss is betting that global expansion can be its game-changer" . Retrieved 14 June 2022.
  6. ↑ Ben Martin (25 April 2020). "IG puts on spread for staff with bumper bonus round" . Retrieved 14 June 2022.
  7. ↑ Ben Martin (25 April 2020). "IG Group boss is betting that global expansion can be its game-changer" . Retrieved 14 June 2022.
  8. ↑ Ben Martin (23 February 2021). "IG Group pulls plug on leveraged share bets" . Retrieved 4 June 2022.
  9. ↑ "FCA IG Markets Limited". Financial Conduct Authority. Retrieved 9 July 2019.
  10. ↑ "FCA IG Index Limited". Financial Conduct Authority. Retrieved 9 July 2019.
  11. ↑ "FTSE 250 - Indicative Index Weight Data as at Closing on 31 December 2014". FTSE. 31 December 2014. Archived from the original (PDF) on 24 February 2019. Retrieved 10 May 2015.
  12. ↑ "Spread bets firm IG Index holds £110m market slip". The Telegraph . 10 June 2000. Retrieved 26 October 2023.
  13. ↑ Zainab Hussain, Noor; Radhika, Rukmangadhan (21 September 2017). "IG Group's first quarter revenue jumps on expanded client base". Reuters. Retrieved 25 October 2023.
  14. ↑ Koilparambil, Aby Jose; Shabong, Yadarisa (15 March 2023). "UK's IG Group revenue drops in quiet Dec-Feb quarter". Reuters. Retrieved 25 October 2023.
  15. ↑ Hyland, Anne (6 July 2000). "Rival bookmakers bet on IG price". The Guardian. ISSN   0261-3077 . Retrieved 26 October 2023.
  16. ↑ "IG chief predicts end of market tranquillity". The Telegraph . 24 November 2014. Retrieved 9 November 2023.
  17. ↑ Dewson, Andrew (28 April 2005). "IG Group floats with a half-penny premium". Financial News. Retrieved 14 November 2023.
  18. ↑ "UPDATE 1-CVC sells $90 mln stake in IG Group". Reuters. 11 May 2010. Retrieved 14 November 2023.
  19. ↑ Turner, Lorraine; Hoskins, Paul (24 September 2008). "UPDATE 2-British spread-better IG buys Japan's FXOnline". Reuters. Retrieved 14 November 2023.
  20. ↑ "HedgeStreet Changes its Name to the North American Derivatives Exchange, Inc. (Nadex) | Nadex" . Retrieved 14 November 2023.
  21. ↑ Tucker, Sundeep (24 September 2008). "IG Group buys Japanese trader". Financial Times. Retrieved 10 November 2023.
  22. ↑ Nick Hasell (24 November 2010). "IG Index hit with £21.4m lawsuit by clients of defunct broker Echelon Wealth Management" . The Telegraph . Retrieved 14 November 2023.
  23. ↑ David Altaner (19 July 2011). "IG Logs Full-Year Loss After Taking Japan-Unit Charges". Bloomberg . Retrieved 28 November 2023.
  24. ↑ David Altaner (19 July 2011). "IG Logs Full-Year Loss After Taking Japan-Unit Charges". Bloomberg . Retrieved 28 November 2023.
  25. ↑ David Altaner (19 July 2011). "IG Logs Full-Year Loss After Taking Japan-Unit Charges". Bloomberg . Retrieved 28 November 2023.
  26. ↑ "IG launches online stockbroking platform". The Daily Telegraph. 15 September 2014. Retrieved 29 November 2023.
  27. ↑ Morris, Stephen (7 October 2015). "IG Group Repays $1.5 Million to Clients Over Swiss Franc Turmoil". Bloomberg.com. Retrieved 28 November 2023.
  28. ↑ "How could a teacher on £18,000pa lose £280,000 spread betting?". Independent.co.uk. 18 March 2015. Retrieved 29 November 2023.
  29. ↑ "IG Group Repays $1.5 Million to Clients Over Swiss Franc Turmoil". Bloomberg L.P. 7 October 2015. Retrieved 29 November 2023.
  30. ↑ "Breaking: IG Group Buys DailyFX from FXCM for $40m". Finance Magnates. 30 September 2016. Retrieved 29 November 2023.
  31. ↑ "IG Group Boss Attacks FCA Crackdown Urging Customers to Join the Battle". Finance Magnates. 30 September 2016. Retrieved 15 December 2016.
  32. ↑ "IG Group withdraws from binary betting after watchdog clampdown". The Telegraph. 24 January 2017. Retrieved 29 November 2023.
  33. ↑ "IG Group withdraws from binary betting after watchdog clampdown". The Telegraph. 24 January 2017. Retrieved 29 November 2023.
  34. ↑ Tom Eckett (6 April 2017). "IG launches suite of model portfolios in partnership with BlackRock". Investment Week . Retrieved 2 January 2024.
  35. ↑ Tom Eckett (6 April 2017). "IG launches suite of model portfolios in partnership with BlackRock". Investment Week . Retrieved 2 January 2024.
  36. ↑ "Breaking: IG Group Officially Launches IG US | Finance Magnates". Finance Magnates | Financial and business news. 1 February 2019. Retrieved 29 November 2023.
  37. ↑ Aziz Abdel-Qader (21 May 2020). "Clients of IG Group Suffer System-Wide Outage, Broker Says Back to Normal". Finance Magnates. Retrieved 3 March 2021.
  38. ↑ Celeste (22 May 2020). "IG Group Experiences Further Platform Issues". Finance Magnates. Retrieved 3 March 2020.
  39. ↑ FinanceFeeds (29 January 2021). "IG Group platform crashes yet again, with traders being left out in the cold". FinanceFeeds. Retrieved 3 March 2021.
  40. ↑ Thomas, Daniel (21 January 2021). "IG expands in US with $1bn Tastytrade acquisition". Financial Times. Retrieved 1 February 2024.
  41. ↑ Spicer, Jonathan; Stempel, Jonathan (8 January 2009). "TD Ameritrade buying thinkorswim for $606 million". Reuters. Retrieved 1 February 2024.
  42. ↑ Alexander Osipovich (21 January 2021). "Britain's IG Group to Buy U.S. Options Firm Tastytrade for $1 Billion". The Wall Street Journal. Retrieved 1 February 2024.
  43. ↑ Risley, James (3 January 2017). "Tastytrade launches brokerage to make trading easier for DIY traders | Built In Chicago". Built In. Retrieved 1 February 2024.
  44. ↑ Oladipupo, Solomon (22 February 2023). "Online Broker Tastyworks Rebrands to Tastytrade". Finance Magnates. Retrieved 1 February 2024.
  45. ↑ Tom Waite (2 March 2022). "IN BRIEF: IG Group completes sale of Nadex to crypto.com" . Retrieved 7 June 2022.
  46. ↑ Joanna Ossinger (1 December 2021). "Crypto.com Buys IG's Stake in Citadel, Peak6-Backed Exchange". Bloomberg News . Retrieved 7 June 2022.
  47. ↑ "IG Group and Teach First Launch £2M Education Fund Due to Covid-19 Crisis". 24 April 2020. Retrieved 1 June 2022.
  48. ↑ Maria Nikolova (14 December 2021). "IG Group to give 1% of post-tax profits for charity" . Retrieved 1 June 2022.
  49. ↑ "IG Group CEO interview: ESG, diversity and IG's Brighter Future programme". 14 December 2021. Retrieved 1 May 2020.
  50. ↑ "IG Group chief exec Tim Howkins to quit group and retire in October". 21 July 2015. Retrieved 7 June 2022.
  51. ↑ Maria Nikolova (27 September 2018). "Peter Hetherington to Step down as CEO of IG Group" . Retrieved 7 June 2022.
  52. ↑ "IG Group appoints ex-Citi and IBM executive as first female CEO". Reuters . 30 October 2018. Retrieved 31 October 2018.
  53. ↑ Hannah Finch (25 February 2022). "The 18 women leading top firms in the FTSE 350 in 2022" . Retrieved 7 June 2022.
  54. ↑ "City trading house IG Group picks ex-Betfair boss Corcoran as new CEO". The Evening Standard. 8 December 2023. Retrieved 29 January 2024.
  55. ↑ Shome, Arnab (8 December 2023). "Breaking: IG Group Names Breon Corcoran as CEO". Finance Magnates. Retrieved 16 February 2024.
  56. ↑ "Where we operate". IG Group. Retrieved 20 February 2024.
  57. ↑ "IG chief predicts end of market tranquillity". The Telegraph . 24 November 2014. Retrieved 9 November 2023.
  58. 1 2 Ben Martin (25 April 2020). "IG Group boss is betting that global expansion can be its game-changer" . Retrieved 21 February 2024.
  59. ↑ Oladipupo, Solomon (30 August 2023). "IG Group's American Arm Joins FIA, Expands Its Global Trading Network". Finance Magnates. Retrieved 21 February 2024.
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