Our strategy
Over the past year, we have made significant strides in defining and executing our diversification strategy. Our target to grow net operating income by 30% over the next three years is unchanged. This requires new investment, and the benefits of this will be seen with our expectation of PBT margin expansion from 2025. Our growth strategy is built on three core pillars.
1. Trading platform product diversification
Opportunity
Our initial priority is to concentrate on providing continual product diversification and developing a multi-asset interface within our core trading business. This will enable us to furnish our clients with access to a broader range of asset classes, thereby strengthening our engagement and capturing a greater proportion of their trading volumes. While CMC has traditionally been reliant on CFDs and spread betting, with a large Invest business in Australia, the imminent addition of cash equities, options and other financial instruments throughout the coming year will make our offering even more relevant to the new cohort of clients we are attracting.
Underpinned by technology
- Investing in proprietary technology is crucial to meeting clients’ evolving demands and regulatory requirements. CMC’s distinctive approach of owning and developing our technology opens up significant opportunities for future expansion, which is a defining feature of our growth strategy for our traditional trading business
- As a key element of its broader technology strategy, CMC is transforming the API layer through the use of cloud and the latest ‘DevOps’ practices, to facilitate the faster introduction of new products across our trading front ends
- To improve our clients’ overall experience, we are dedicated to maintaining high platform availability and implementing continual improvements to performance
2. Investment in B2B technology capability
Opportunity
To achieve sustainable long-term growth, our strategy involves harnessing our technology to facilitate expansion through B2B partnerships. Direct collaboration with our clients enables us to provide them with access to our extensive liquidity, product, and technology stacks. Through the launch of our new Group-wide open API ecosystem, with shared resources and expertise, CMC and our B2B partners can enjoy cost savings and improved operational efficiency.
Underpinned by technology
- We aim to enhance our core multi-asset capabilities to provide an unparalleled and diverse trading experience for our expanding target market across all platforms, whether trading or investing, including B2B capabilities on all platforms
- Additionally, we will continue to invest in our people and technology, with our London and Sydney offices concentrating on developing all new platform features based on our technology offerings
- We will establish new ways of working across our traditional trading and growing investing and institutional businesses to accelerate product delivery, improve organisational learning, and incrementally increase the value we provide to our clients
3. Expansion of invest platforms and institutional offering
Opportunity
Central to our strategy is a shift towards enabling our clients to generate long-term wealth through our investing platforms. We believe that the self-directed investment platform sector offers substantial growth potential, particularly in the UK but also Singapore. In the same vein, we see major prospects in our institutional trading unit, as we persistently augment our volumes as a non-bank liquidity provider and forge fresh trading alliances across the globe.
Underpinned by technology
- In the institutional space, our objective is to establish CMC Connect as a comprehensive fintech solution and non-bank liquidity provider
- Deliver ongoing technological enhancements within the institutional and investing businesses to provide B2B capability
- We will enhance recently added new products, such as FX give-ups, and our ECN connectivity to further cement our position
- We will also strive to enhance our technology stack to drive brand and product awareness across all channels and distribution outlets across both our investing and institutional platforms
Our progress