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CMC Markets plc
Annual Report and Financial Statements
2022
CMC Markets plc Annual Report and Financial Statements 2022
CMC is a leading global
providerof online trading
withacomprehensive
retail, professional and
institutionaloffering.
Strategic report
2 CMC at a glance
6 Highlights 2022
7 Investment case
8 Chairman’s statement
10 Our business model
12 Stakeholder engagement
14 Our markets
16 Chief Executive Officer’s statement
20 Our strategy
22 Key performance indicators
25 Technology and Innovation
28 Sustainability
40 TCFD
44 Financial review
50 Risk management
51 Principal risks
Corporate governance
58 Board of Directors
60 Governance report
69 Group Audit Committee report
73 Group Risk Committee report
75 Group Nomination Committee report
78 Directors’ Remuneration report
100 Directors’ report
Financial Statements
105 Independent auditors’ report
113 Consolidated income statement
114 Consolidated statement of
comprehensive income
115 Consolidated statement of
financialposition
116 Parent company statement of
financialposition
117 Consolidated and parent company
statements of changes in equity
118 Consolidated and parent company
statements of cash flows
119 Notes to the consolidated and parent
company Financial Statements
Shareholder information
159 Shareholder information
164 Appendices
The business was started in 1989
withasimple ethos: to make financial
markets truly accessible for investors.
Thisfundamental belief remains at the
heartof everything we do at CMC Markets
and staying true to that has been pivotal
toour success.
Read more at cmcmarketsplc.com
“ Our purpose
istoconstantly
maintain a superior
and unrivalled
technology
experience for
ourclients.”
Lord Cruddas
Founder and CEO
1
CMC Markets plc
Annual Report and Financial Statements 2022
CMC at a glance
Empowering our clients and providing
first-class access to the evolving
landscape of investing and trading
Listening to our clients’ demands is
integral to what we do. Our continued
investment in technology will facilitate
an ever-improving range of financial
products to satisfy these demands.
At CMC we continue to invest in the
diversification of our product offering,
in particular expanding our reach to
non-leveraged products across existing
and new geographies. We believe
this will benefit our clients as well as
support the needs of our stakeholders
in driving earnings and profitability for
the Group.
Bespoke solutions in a dynamic world
Societal shifts in technology and demographics are driving far-reaching
changes in how platform providers serve the new generation of trading and
investing clients. Our purpose is to constantly maintain a superior and
unrivalled bespoke technology experience to our clients.
Leveraged
Internal risk management
Trade and Risk data is stored in a high frequency
tick database, where we record all stages of the risk
management system. We have large Quantitative
Analytics and Data Science teams which build out
both the hardware and software side of the analytic
environment to ensure that client order flow is
managed in the most appropriate way. Data science
and machine learning models are playing an ever-increasing
role in our real-time and offline decision making. Our
aim is to continually provide market leading access
to liquidity to our clients, with best-in-class platform
resilience through every part of our of offering.
Improving product offering and
pricingefficiency
We continue to invest in the diversification of our
products to enhance functionality for our clients.
We already offer over 10,000 products over our
leveraged platforms. Delivering this with the most
efficient pricing structure is paramount. Our pricing
system is continually evolving both in terms of
sophistication and latency minimisation. Latency is
measured in microseconds using high accuracy clock
time-stamping at multiple points through the system,
with real-time monitoring. Best execution internal
reporting allows for the setting of high standards of
execution quality.
Read more on page 25
Strategic report
2
CMC Markets plc
Annual Report and Financial Statements 2022
Non-leveraged
Expansion in non-leveraged businesses
Secular shifts in investment trends present high
growth opportunities across non-leveraged investment
platforms globally. Building on the successes from
our Australian stockbroking business, the launch of
our UK non-leveraged platform in April 2022 allows
us to tap into the growth being seen in self-managed
investing. This will, over time, drive a more balanced and
diversified income stream for the Group.
Read more on page 26
Leveraged and non-leveraged
Technology-backed business to business
(“B2B”) offering
In addition to our retail offering we provide
technology-backed solutions to mid-sized and large
financial institutions. CMC already provides execution,
clearing and settlement services as a service provider
to a number of Australian financial service licensees.
Our business to business (“B2B”) partnership directive
will now be expanding across all our existing as well as
new geographies over the coming 12 months. Growth
from our non-leveraged operations will reposition our
business to the some of the fastest growing shifts in
trading and investing.
Our Tomorrow - taking a positive position
At CMC Markets, our vision is to unite with the global
capital markets shift towards a sustainable future, by
providing responsible and innovative technological
solutions that protect, educate and inspire our people
and clients to invest for the future.
Read more on page 28
Strategic report
3
CMC Markets plc
Annual Report and Financial Statements 2022
Strategic report