BUZZ-IG Group: shares hit after EU markets watchdog clampdown

(Adds CMC comments)

** British online financial trading company IG Group down >8 pct after flagging hit to FY19 revenue from new regulations

** European Union financial markets watchdog ESMA announced plans to ban 'binary' options sales to retail investors and restrict the sales of Contract for Differences (CFDs)

** ESMA says prohibiting the marketing, distribution and sale of binary options to retail investors, while its restrictions on CFDs would affect the marketing, sale and distribution of them

** IG "disappointed" that ESMA has imposed leverage restrictions; adds revenue in the 2019 financial year would be lower than that expected for 2018

** Investec (LSE: INVP.L - news) says the changes would imply a cut to its 2019 revenue estimates for IG (Frankfurt: A0EARV - news) of 2.2 pct; rates stock "buy"

** IG shares on track for worst day since Dec (Shanghai: 600875.SS - news) 2017; rival CMC (BSE: CMC.BO - news) down 3.4 pct at 0938 GMT

** CMC, in a market release, says margin changes are likely to have an impact on how clients trade, although at this stage it is not possible to quantify impact; adds reduction in revenue will be immaterial in a group context​