IG is fizzing thanks to volatile global stocks

The collapse of rival MF Global and the unprecedented volatility of global stock markets in August saw IG Index, the world's largest spread-betting firm, increase profits by 28% in its first half.

Revenues also rose 28% to £195 million in the six months to November with pre-tax profits at £103 million.

Chief executive Tim Howkins said: "Market conditions during the period were mixed: market volatility and hence client activity were relatively subdued in June and July; August saw a period of extraordinary market volatility, which resulted in highly elevated levels of client activity; whilst after August, volatility remained elevated but as clients progressively became more accustomed to these market conditions their activity reduced to more normal levels."

He added: "we remain well positioned to deliver further profitable growth."

The UK still accounts for more than half IG's revenues but its operations in Europe and Australia delivered 40%-plus revenues growth.
In Australia the government has launched a consultation over the segregation of clients' money following the collapse of MF Global.

Howkins said he expected that to lead to measures designed to protect clients' money completely. This could be followed in other countries.