CMC Markets takes £62m hit

INVESTORS wiped more than £62m off CMC Markets after it warned profits will be hit by a crackdown.

The trading firm warned rules governing contract-for- difference deals will cause more damage than previously feared.

Watchdog the European Securities and Markets Authority last month brought in restrictions on CFDs, which allow traders to guess the future price of shares, commodities and currencies. It is feared investors do not understand their risk.

A CMC spokesman said the measures ‘has reduced UK and European retail client activity as expected’.