CMC Markets sinks after flagging challenging environment in Feb, March

(Reuters) - Shares of UK's online retail financial services provider CMC Markets Plc plunged to an almost three-year low on Monday after the company said it faced a more challenging environment in February and March amid lower equity volumes.

Shares of the company fell as much as 21.1% at 183 pence at 1641 GMT.

Trading platforms, which saw a revival in client activity on heightened market volatility since Russia's invasion of Ukraine last year, are battling a slowdown as market volatility eases.

CMC Market, which has been struggling with higher costs on the back of weakness in British pound and inflationary pressures, said it was also hurt by a higher proportion of low-margin institutional trading activity in February and March.

The company said it expects full-year operating costs excluding variable remuneration to be in the range of 215 million pounds to 220 million pounds.

It expects full-year net operating income between 280 million pounds and 290 million pounds, compared with 281.9 million pounds a year earlier.

($1 = 0.8143 pounds)

(Reporting by Sinchita Mitra in Bengaluru; Editing by Shinjini Ganguli)