TORONTO, March 3 /CNW/ - CMC Markets Canada Inc. (CMC Markets) today
announced that it has become a member of the Investment Dealers Association of
Canada (IDA), the national self-regulatory organization for the Canadian
"This is fantastic news for our clients and for the future of Contracts
for Difference (CFDs) in Canada," stated Alex Daschko, Managing Director &
CEO. "What this means is that CMC Markets' trading activities in distributing
CFDs, which are a relatively new investment product in the Canadian
marketplace, are now regulated by the IDA. In addition to IDA oversight,
clients also receive the safeguards of the Canadian Investor Protection Fund,
which is another major benefit of IDA membership."
CFDs are one of the fastest growing trading instruments in the world,
with 35% of the volume on the London Stock Exchange being attributed to the
product. CMC Markets is the only distributor of CFDs in Canada, and although
they are currently restricted to accredited investors, CFDs are growing in
popularity. This is because of the access they provide to global Equities,
Indices, Commodities, Treasuries and Currencies, as well as the powerful
leverage component. All Canadian equity CFDs (those in which the underlying
instrument is an issuer listed on a Canadian stock exchange) are currently
offered at a margin rate of 15% to 30%. This means the leverage on Canadian
CFDs is more competitive than on traditional Canadian shares, which typically
offer a 30-50% margin rate.
To qualify as an IDA member, companies must satisfy stringent capital
requirements, maintain appropriate levels of insurance and have sales and
executive management teams that meet certain proficiency requirements.
"Being recognized by the IDA is another important milestone in our
Canadian growth strategy, with our ultimate goal of becoming one of the
country's premier trading firms. We look forward to continuing to bring new
and exciting products to the Canadian marketplace," added Mr. Daschko.
For more information on CMC Markets Canada and CFDs please visit
About CMC Markets
CMC Markets is Canada's only online CFD provider and its affiliate, CMC
Markets UK plc, was the first company in the world to offer online FX trading.
CMC Markets UK plc has been offering CFDs and FX to Canadian traders through
the services of CMC Markets since 2005.
Founded in 1989, CMC Group has 22 offices worldwide, employs in excess of
900 staff and represents clients in over 70 countries. Between November 2006
and October 2007, CMC Group handled over 16.2 million trades with a total
value of over US $1.1 trillion, across the full product range. In December
2007, Goldman Sachs acquired a 10% stake in the CMC Group.
CFDs and FX are highly speculative and can involve a high degree of risk.
Investors in CFDs should be prepared for the risk of losing their entire
investment and losing further amounts. Trading accounts are available to
Accredited Investors only. CMC Markets will not open accounts except in
jurisdictions in which it is registered or exempt from registration. CMC
Markets is an execution-only dealer and does not provide investment advice or
recommendations regarding the purchase or sale of any securities. Investors
are responsible for their investment decisions. CMC Markets will not determine
an investor's general investment needs and objectives or the suitability of a
proposed purchase or sale of a security. CFDs are distributed in Canada by CMC
Markets Canada Inc. as dealer and agent of CMC Markets UK plc. CMC Markets
Canada Inc. is a member of the Investment Dealers Association of Canada and
the Canadian Investor Protection Fund. Contact us for further details.
For further information:
For further information: Beth Merrick, ZAZOU Communications, (416)
654-9881, firstname.lastname@example.org; Jayne Banks, CMC Markets Canada, (416) 682-5041,