Boston-based investment company FMR Co., Inc. has bought a 4.6% stake in CMC Markets, a CFD broker.
The deal was worth about $17.89 million. The purchase came just after Odey Asset Management bought shares in Plus500, another giant in the CFD trading segment. The broker lost almost a third of its value as a result of the actions of the British regulator FCA, which tightened control over the sale of financial instruments.
The value of CMC has dropped by $260 million, so the company is now much cheaper. Again, the reason for this was the tightening of regulation of the sale of financial instruments. These actions had a negative impact on more than one broker. So for FMR, the decision to acquire shares of a cheaper company may not be as successful as planned.
But on the other hand, it’s hard to believe that FMR didn’t analyze the situation before buying.
