BUZZ-London-listed Spreadbetters slide on regulatory clampdown

(Adds analyst)

** Shares (Berlin: DI6.BE - news) in London-listed spreadbetters IG Group, Plus500 (Stuttgart: P55.SG - news) and CMC Market drop by 11-16 pct after EU securities watchdog proposed curbs on core parts of their market

** Regulator ESMA proposed late on Friday to prohibit the marketing, distribution or sale of binary options to retail clients http://bit.ly/2yGx85b

** ESMA also proposed restricting marketing, distribution or sale to retail clients of contracts for differences or CFDs, including rolling spot forex

** Investec (LSE: INVP.L - news) analyst Alistair Ross says he is keeping "buy" rating on IG (Frankfurt: A0EARV - news) , saying co looks fairly well placed because of the lack of retail customer base

** "We think a lot of this is priced in... I think they have taken a fairly conservative approach in implementing what they think the regulator will throw at them. They also say they will maintain their dividend," says Ross

** "I think CMC (BSE: CMC.BO - news) and Plus 500 are les well placed than IG"

** IG Group down 11 pct, Plus500 -16 pct and CMC (Shanghai: 600327.SS - news) -12 pct

** IG shares top faller on FTSE Mid Cap while shares in Plus 500 come in second weakest on whole of London Stock Exchange