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TRADING
Crisis meetings at CMC Markets
Toni Case - November 6, 2008
CFD specialist CMC Markets held an all-staff meeting at the Intercontinental Hotel in Sydney today at 2.30pm to put the rumours to rest once and for all. What is happening to CMC Markets?
CMC Markets' normally thundering public relations machine has suddenly gone quiet, and in its place is FD Third Person, a media agency "specialising in financial transaction support and issues and crisis management”, according to their website.
CompareShares did its best to get clarification for traders with existing accounts with CMC Markets. We put in numerous calls to internal public relations, Sydney reception, the New Zealand office and even the 1300 303 888 number and couldn't get anyone to comment. Phone calls rang out. According to FD Third Person, key staff were in meetings until late last night and again early this morning.
CMC Markets did not want to make an official announcement to the market until staff had been notified of the changes at 2.30pm today, was the official response.
It’s now official that managing director David Trew has been axed from the Group. Trew, who made headlines earlier this year when splurging on a $25 million trophy mansion in Point Piper (as reported in The Australian newspaper) is leaving the group, according to FD Third Person. And more staff cuts – “in non-client facing functions” – are scheduled for the Sydney office. CMC Markets shut its Perth office in August this year, and recently slashed Sydney staff by around 8 per cent.
Furthermore, the London head office will be taking the reins over its Antipodean businesses. CMC Markets’ business units, Sydney, New Zealand and Asia (Singapore, Hong Kong and Japan) will now report directly to London, states FD Third Person. To date, the Australian and New Zealand businesses came under the wing of former managing director Trew.
Two months ago, CompareShares reported on a series of events that had unfolded at CMC Markets, “An AVO, staff cuts and a trophy mansion – it’s all happening at CMC Markets.”
Back then, managing director David Trew denied the suggestion that staff cuts were a result of problems at CMC Markets. He insisted that further staff cuts were not anticipated.
Stay tuned - we'll keep you updated with any developments in this story.
Toni Case is the managing editor of CompareShares and FatCat.
More articles from this edition of CompareShares:
Trading: Crisis meetings at CMC Markets
Financial Crisis: How Australia's wealthiest investors are navigating the financial crisis
Forex: Two secret tips to successfully trading the forex markets
Expert Panel: How do currencies move in relation to each other?
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Rates: All four big banks cut home loan rates
US Crisis: US stocks fall, economy worries heighten
Companies: News Corp Q1 net profit falls 29.6%
US Crisis: Goldman begins to cut 10% of staff
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