The company’s valuation drops to under $200 million a little over a year after the $350 million IPO.
A little over a year ago, Polish retail brokerage company XTB Dom Maklerski marked one of the most successful public offerings in the industry, valuing the company at $349 million. The listing at the time constituted the biggest share sale via the Warsaw Stock Exchange in 2016.
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Yesterday, Polish regulatory authorities marked the beginning of a new era for retail traders in the country. The maximum Leverage for foreign exchange traders will be cut to 1:25. The news came as a follow-up to a previous action taken by the Polish Financial Supervision Commission (KNF) in 2015, when it capped leverage at 1:100.
Shares of the biggest Polish retail Forex and CFDs brokerage publicly listed on the Warsaw Stock Exchange tanked over 12 percent in response, marking a new all-time low at PLN 6.15.
The company’s revenues from the country make up a substantial portion of its earnings. In 2016, XTB sourced over $21.5 million (PLN 80 million) of revenues from Poland. In the first quarter of 2017, the brokerage reported about $2.9 million (PLN 10.6 million) of revenues, which represented a decline of 52 percent when compared to a year ago.
For the full year in 2016, XTB’s revenues from Poland constituted 32 percent of the company’s total operating income. Looking at the first quarter of 2017, the figure declined to 18 percent, which is a much more manageable situation, but nevertheless paints a dim picture for at least a portion of those revenues.
The regulatory backlash against retail brokers started across the EU in the aftermath of the Swiss National Bank crisis. At the time, a number of brokers chose to transfer their losses to clients and caught the attention of financial industry supervisors across the EU.
The latest changes to the Polish industry show that the strategy of overwhelming clients with risk, which some brokers do by providing excessive leverage, is coming to an end. Companies will need to find better ways to entice their clients to remain active without taking too much risk onto their books.
A little over a year ago, Polish retail brokerage company XTB Dom Maklerski marked one of the most successful public offerings in the industry, valuing the company at $349 million. The listing at the time constituted the biggest share sale via the Warsaw Stock Exchange in 2016.
[gptAdvertisement]
Yesterday, Polish regulatory authorities marked the beginning of a new era for retail traders in the country. The maximum Leverage for foreign exchange traders will be cut to 1:25. The news came as a follow-up to a previous action taken by the Polish Financial Supervision Commission (KNF) in 2015, when it capped leverage at 1:100.
Shares of the biggest Polish retail Forex and CFDs brokerage publicly listed on the Warsaw Stock Exchange tanked over 12 percent in response, marking a new all-time low at PLN 6.15.
The company’s revenues from the country make up a substantial portion of its earnings. In 2016, XTB sourced over $21.5 million (PLN 80 million) of revenues from Poland. In the first quarter of 2017, the brokerage reported about $2.9 million (PLN 10.6 million) of revenues, which represented a decline of 52 percent when compared to a year ago.
For the full year in 2016, XTB’s revenues from Poland constituted 32 percent of the company’s total operating income. Looking at the first quarter of 2017, the figure declined to 18 percent, which is a much more manageable situation, but nevertheless paints a dim picture for at least a portion of those revenues.
The regulatory backlash against retail brokers started across the EU in the aftermath of the Swiss National Bank crisis. At the time, a number of brokers chose to transfer their losses to clients and caught the attention of financial industry supervisors across the EU.
The latest changes to the Polish industry show that the strategy of overwhelming clients with risk, which some brokers do by providing excessive leverage, is coming to an end. Companies will need to find better ways to entice their clients to remain active without taking too much risk onto their books.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
FMLS:24 | Shaping the Next Era of Financial Evolution
FMLS:24 | Shaping the Next Era of Financial Evolution
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
#fmls #fmls24 #fmevents #financemagnates #forex #payments #crypto #events #london #fintech #ai #generativeai #technology #onlinetrading #forex #investing #investors #tech
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
#fmls #fmls24 #fmevents #financemagnates #forex #payments #crypto #events #london #fintech #ai #generativeai #technology #onlinetrading #forex #investing #investors #tech
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!