CMC Markets Fully Segregates All Client Funds to Provide Customers with Additional Security

By Cmc Markets, PRNE
Sunday, November 6, 2011

SYDNEY, November 7, 2011 -

CMC Markets has today announced the implementation of a fully segregated client money model, including client margins, in Australia and New Zealand.

“While we have always maintained client monies to the highest of standards and in accordance with client money rules, our clients now have the extra peace of mind in knowing CMC Markets has a 100% segregated model,” said Louis Cooper, head of CMC Markets in Australia and New Zealand. “We have been working towards  this model for several months, which brings us in line with the practices of our UK parent, and I am pleased to be implementing it at such a crucial time.”

Client money treatment has recently been in the spotlight following the corporate collapse of futures broker MF Global. While the group’s demise has been widely attributed to its $6 billion exposure to European sovereign debt and a recently reported commercial loss of $187 million, the company’s use of  client moneys have also come into question.

“Although the demise of MF Global is not necessarily related to its CFD business, it’s important our customers feel safe and secure about the money they invest via CMC Markets’ market leading platform,” Mr. Cooper said.

Mr. Cooper said as the industry’s best education provider for over three years[1], CMC Markets takes a strong view on education and disclosure around counterparty risk.  

“I encourage any investor to carefully check the counter party risk disclosure of any financial service provider and investigate how they segregate client monies, regardless of which asset they’re investing in. At CMC Markets we are constantly striving to give clients as much information as possible including via email contact, vigorous and easy to understand disclosure on our  website and via our social media presence,” he said.

The detail on how CMC Markets’ fully segregated client money model operates is as follows:

  • Client money, including client margins, are not used to meet the trading obligation of other clients
  • Client money, including client margins, are not used to execute any of CMC Markets’ hedging activity. CMC Markets uses only its own funds to finance such hedging activity.
  • CFD funds with CMC Markets are held in a separate trust account with a top-tier Australian bank, and are established, maintained and operated in accordance with the Australian Client Money Rules.

“The fact that we now have a fully segregated client money model, that we are cash rich and that we have robust internal risk management and compliance systems, means I can very confidently say to our Australian and New Zealand customers that in regards to counterparty risk, they have never been more safe and secure.” Mr. Cooper concluded.

Alexandra Cain
Honner Media

About CMC Markets

The CMC Markets Group, a leading independent financial services provider, offers a range of investment products and investment tools including shares, options, listed managed investments, warrants, interest rate securities and  Contracts for Difference (CFDs). Through our partnerships we can also provide  access to managed funds and margin lending execution. In 2007 CMC Markets  launched its broking service with the acquisition of Andrew West Stockbroking  and CMC Markets Stockbroking is now one of the only non-bank aligned, online  stockbrokers in Australia.

CMC Markets is a pioneer of CFD trading in Australia and a world leading CFD provider. With offices in London, Frankfurt, Dublin, Madrid, Vienna, Sydney, Tokyo, Toronto, Beijing, Auckland, and Singapore, CMC Markets represents clients in over 70 countries. The company was founded in 1989 and is regulated by ASIC in Australia. CMC Markets Stockbroking is a participant of the ASX Group.


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