IG Group's Expansion into Digital Assets

 

Leading the news recap this week, the IG Group has announced its plans to expand its offerings in the digital asset arena by introducing spot cryptocurrency trading geared towards retail investors. This strategic move aims to enhance their existing portfolio, which already includes crypto contracts for difference (CFDs). IG Group, a London-listed platform, will now allow spot trading across more than 30 cryptocurrencies. Notable digital assets such as Bitcoin, Ether, XRP, and various meme tokens will be available for trading. Through a partnership with Uphold—a firm regulated in both the US and the UK—IG Group seeks to adopt the highest standard of security and reliability in crypto trading.

 

Kraken's New Brokerage Solution

 

Simultaneously, the crypto exchange Kraken has launched a novel full-service brokerage solution, targeting a more professional clientele. Aptly named Kraken Prime, this new platform is designed to cater to hedge funds, asset managers, corporates, and substantial market participants. The service consolidates various trading functions, including custody and asset financing, into a comprehensive interface. By offering continuous client support and trading execution standards familiar to traditional finance professionals, Kraken Prime aims to bridge the gap between cryptocurrency and traditional markets.

 

Revolut's Push into Derivatives Trading

 

In a related development, a job listing has revealed Revolut's intent to step into the derivatives market, marking its most ambitious venture in the crypto space to date. The fintech company is preparing to develop this segment from the ground up amidst facing regulatory uncertainties at its headquarters. As Revolut embarks on this ambitious path, it coincides with Hong Kong's regulatory efforts to introduce crypto derivatives trading for professional investors. This regulatory shift aims to broaden product offerings in the crypto asset class and bolster the city's competitive position globally.

 

Challenges in Prop Trading Funding

 

In the prop trading sphere, a core issue remains the verifiability of payout claims and obtaining client funding. A recent study revealed a stark reality—only 20% of prop firm clients secure funding. The participation rates are highest in Colombia, followed by the United States and Brazil. While prop firms offer an alternative route for traders who might not have access to traditional capital, the financial path can be fraught with uncertainties.

 

Financial Performance of CMC Markets

 

On the fiscal front, CMC Markets concluded the year 2025 on March 31 with noteworthy financial outcomes. The company reported a net operating income of £340.1 million, reflecting a modest 2% increase year-over-year. Furthermore, pre-tax profits surged by 33% to reach £84.5 million, highlighting robust operational efficiency. A significant contributor to these results was the company's Australian stockbroking unit, which achieved a record net operating income of AU$106.3 million, driven by an increase in active clients and new account openings.

 

Regulatory Shifts in Russia and Cyprus

 

In regulatory news, Russian forex brokers are adjusting to a new federal law that restricts the use of foreign messaging platforms like Telegram for customer support. The regulation affects two out of the three locally licensed forex brokers in Russia. This move marks a shift in how financial entities engage with clients amid heightened regulatory environments.

Meanwhile, Cyprus is scrutinized in allegations linked to international money laundering networks. Paphos Mayor Phedonas Phedonos accused certain Forex firms in Cyprus of facilitating Latin American drug cartels' money laundering operations through intricate shell company structures. These claims have brought renewed focus on financial compliance and anti-money laundering efforts within the Cypriot financial terrain.

 

ESMA's Retail Investment Consultation

 

In Europe, the European Securities and Markets Authority (ESMA) has called for feedback to better understand how retail investors interact with investment services, alongside exploring any possible regulatory or non-regulatory hindrances to capital market participation. This consultation underscores a broader conversation about the role of regulation in restricting retail investment across Europe, as excessive regulation may inadvertently deter retail participants.

 

Political Drama: The Trump-Musk Rift

 

In a surprising twist within U.S. political and economic discourse, tensions erupted between former President Donald Trump and Tesla's CEO, Elon Musk. The discord arose following Musk's criticism of Trump's cherished mega bill, which he labeled as laden with unnecessary spending and financial imprudence. The friction comes on the heels of Musk's decision to abandon the DOGE cryptocurrency, coinciding with the Trump administration’s decision to cut support for electric vehicles from the budget. This public fallout highlights the complex interplay of politics, business, and personal ego in shaping economic policy narratives.