CMC Markets (LSE: CMCX) has entered one of Europe's largest structured products markets with the launch of its first listed certificates and warrants in Germany and Austria. The products are being issued through Frankfurt-based subsidiary CMC Markets Securities GmbH, with the rollout beginning on Monday.
The London-listed broker is starting with an expanded range of crypto-linked products and plans to broaden its offering over the coming months. This launch brings CMC Markets into direct competition with established German issuers and several competitors from the contracts for difference (CFD) sector that have already built positions in securitised leverage products.
Strategic context and market landscape
Founder and chief executive Lord Peter Cruddas framed the move as a response to what he described as a pullback by traditional bank issuers from the German derivatives market. He said the launch is "timely" given that "major banks" have been exiting the space over recent years while demand remains "strong and growing," adding that CMC Markets aims to "fill that void."
The German certificates market remains competitive. Institutions including BNP Paribas, DZ Bank, Commerzbank, LBBW, Helaba, HypoVereinsbank (UniCredit), Vontobel and HSBC Trinkaus have all held substantial market share in recent years. Outstanding volumes in German structured products reached more than €114 billion in mid-2024, underlining the size of the segment CMC Markets is targeting.
Regulatory backdrop and product focus
The launch comes at a challenging time for the turbo certificates segment. In October, German regulator BaFin announced new restrictions on turbo certificates sold to retail investors. These include a mandatory CFD-style risk warning before each purchase and a ban on bonus payments by providers. The new rules are scheduled to take effect in June 2026, only weeks after CMC Markets' entry into the listed certificates and warrants space.
BaFin's own study, covering the period from January 2019 through December 2023, found that 74.2% of the 543,000 German retail investors who traded turbo certificates incurred losses. Cumulative losses over that period amounted to about €3.4 billion, highlighting the risks associated with these products for retail participants.
Despite the regulatory headwinds, CMC Markets is aligning the launch with its broader push into digital assets by prioritising crypto-linked products. Richard Freeman, head of CMC Securities, said the firm intends to introduce additional underlyings "in a timely manner" using its existing platform technology, indicating a phased expansion of the product range beyond the initial crypto focus.
