IG Group
Encyclopedia
IG Group plc is a British
-based company trading in financial derivatives. While the majority of the company's activities are based in the UK
the company has also expanded internationally. It is listed on the London Stock Exchange
and is a constituent of the FTSE 250 Index
.
in 1974 as a spread betting
business under the name IG Index (an abbreviation for Investors Gold Index). In 1982 it started to offer bets on FT 30
companies and in 1995 on all publicly-traded companies.
In July 2000, shares in the newly named IG Group plc were first listed on the London Stock Exchange
.
In July 2002, IG Group commenced trading in Australia
after a change in the country's financial services legislation made it possible to offer Contracts for Difference
to Australia
n residents.
IG Group took the opportunity to acquire Wheeler's shares, and those of certain other long-standing shareholders, in a management buy-out (backed by venture capitalists CVC Capital Partners Ltd
) which valued the company at £143 million. IG Group plc's listing on the London Stock Exchange
was subsequently cancelled on 7 November 2003.
In May 2005, after two years of private ownership, IG Group and CVC Capital Partners
re-floated the company on the main list of the London Stock Exchange
with a valuation of £393 million.
In October 2008 IG acquired fxonline, a Japanese retail FX business.
IG Group has been trying to gain access to the potentially lucrative US market where IG Group's main products, Contracts for Difference and Financial Spread Betting, are currently not legal. In 2007 it purchased HedgeStreet
, a small US based company that developed an electronic marketplace that allows online retail investors to trade financial derivatives. It renamed this the 'North American Derivatives Exchange' or (NADEX) and has been attempting to use this to develop a product that looks like its binary spread bet product but which meets the US financial regulations and can be offered to retail traders. In May 2010 it obtained permission from the US Commodity Futures Trading Commission
to make various technical changes that move in that direction.
In June 2011 IG Markets shut down its traditional fixed-odds sports service extrabet, which had an emphasis on in-play betting. The fixed odds sport service was shut down to focus on financial wagers, after failing to find a buyer for the whole unit.
The Company has operations in London, Melbourne, Singapore, Chicago, Dusseldorf, Paris, Madrid, Milan, Luxembourg, Tokyo and Stockholm
in the United Kingdom
. The Group's Australia
n operations are regulated by the Australian Securities and Investments Commission (ASIC)
and the Group's Singapore
operations are regulated by the Monetary Authority of Singapore (MAS)
.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
-based company trading in financial derivatives. While the majority of the company's activities are based in the UK
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
the company has also expanded internationally. It is listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
and is a constituent of the FTSE 250 Index
FTSE 250 Index
The FTSE 250 Index is a capitalisation-weighted index consisting of the 101st to the 350th largest companies on the London Stock Exchange. Promotions to and demotions from the index take place quarterly in March, June, September and December...
.
History
The company was founded by Stuart WheelerStuart Wheeler
Stuart Wheeler is a British businessman and politician. He made his fortune as the founder of the spread betting firm IG Index in 1974, but is best known for his political activism, being formerly a major donor to the Conservative Party and since 2011, has been treasurer of the United Kingdom...
in 1974 as a spread betting
Spread betting
Spread betting is any of various types of wagering on the outcome of an event, where the pay-off is based on the accuracy of the wager, rather than a simple "win or lose" outcome, such as fixed-odds betting or parimutuel betting. A spread is a range of outcomes and the bet is whether the outcome...
business under the name IG Index (an abbreviation for Investors Gold Index). In 1982 it started to offer bets on FT 30
FT 30
The FT 30 is a now rarely used index that is similar to the Dow Jones Industrial Average. It has since been superseded by the FTSE 100, introduced in 1984....
companies and in 1995 on all publicly-traded companies.
In July 2000, shares in the newly named IG Group plc were first listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
.
In July 2002, IG Group commenced trading in Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
after a change in the country's financial services legislation made it possible to offer Contracts for Difference
Contract for difference
In finance, a contract for difference is a contract between two parties, typically described as "buyer" and "seller", stipulating that the buyer will pay to the seller the difference between the current value of an asset and its value at contract time...
to Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
n residents.
IG Group took the opportunity to acquire Wheeler's shares, and those of certain other long-standing shareholders, in a management buy-out (backed by venture capitalists CVC Capital Partners Ltd
CVC Capital Partners
CVC Capital Partners is one of the top five largest private equity firms globally with approximately US$46 billion in funds focused on management buyouts...
) which valued the company at £143 million. IG Group plc's listing on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
was subsequently cancelled on 7 November 2003.
In May 2005, after two years of private ownership, IG Group and CVC Capital Partners
CVC Capital Partners
CVC Capital Partners is one of the top five largest private equity firms globally with approximately US$46 billion in funds focused on management buyouts...
re-floated the company on the main list of the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
with a valuation of £393 million.
In October 2008 IG acquired fxonline, a Japanese retail FX business.
IG Group has been trying to gain access to the potentially lucrative US market where IG Group's main products, Contracts for Difference and Financial Spread Betting, are currently not legal. In 2007 it purchased HedgeStreet
HedgeStreet
Nadex , formerly known as HedgeStreet, is an electronic exchange that allow trading in a number of financial derivatives...
, a small US based company that developed an electronic marketplace that allows online retail investors to trade financial derivatives. It renamed this the 'North American Derivatives Exchange' or (NADEX) and has been attempting to use this to develop a product that looks like its binary spread bet product but which meets the US financial regulations and can be offered to retail traders. In May 2010 it obtained permission from the US Commodity Futures Trading Commission
Commodity Futures Trading Commission
The U.S. Commodity Futures Trading Commission is an independent agency of the United States government that regulates futures and option markets....
to make various technical changes that move in that direction.
In June 2011 IG Markets shut down its traditional fixed-odds sports service extrabet, which had an emphasis on in-play betting. The fixed odds sport service was shut down to focus on financial wagers, after failing to find a buyer for the whole unit.
Operations
IG Group uses two brands for its core business;- IG Index offers spread bettingSpread bettingSpread betting is any of various types of wagering on the outcome of an event, where the pay-off is based on the accuracy of the wager, rather than a simple "win or lose" outcome, such as fixed-odds betting or parimutuel betting. A spread is a range of outcomes and the bet is whether the outcome...
on financial markets. - IG Markets offers Contracts For DifferenceContract for differenceIn finance, a contract for difference is a contract between two parties, typically described as "buyer" and "seller", stipulating that the buyer will pay to the seller the difference between the current value of an asset and its value at contract time...
(CFDs) and Foreign exchange marketForeign exchange marketThe foreign exchange market is a global, worldwide decentralized financial market for trading currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends...
(FX) bets on a similar range of financial markets.
The Company has operations in London, Melbourne, Singapore, Chicago, Dusseldorf, Paris, Madrid, Milan, Luxembourg, Tokyo and Stockholm
Online Dealing
New technology offering online dealing was introduced in 1998 and is now extensively used by customers.Regulation
IG Index and IG Markets are regulated by the Financial Services Authority (FSA)Financial Services Authority
The Financial Services Authority is a quasi-judicial body responsible for the regulation of the financial services industry in the United Kingdom. Its board is appointed by the Treasury and the organisation is structured as a company limited by guarantee and owned by the UK government. Its main...
in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
. The Group's Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
n operations are regulated by the Australian Securities and Investments Commission (ASIC)
Australian Securities and Investments Commission
The Australian Securities & Investments Commission is an independent Australian government body that acts as Australia's corporate regulator...
and the Group's Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
operations are regulated by the Monetary Authority of Singapore (MAS)
Monetary Authority of Singapore
The Monetary Authority of Singapore is Singapore's central bank and financial regulatory authority...
.