So who’s afraid of market volatility? Not a spreadbetter

Outlook

Investors monitor a display showing the Shanghai Composite Index at a brokerage in Beijing, Monday, August 31, 2015 (AP Photo/Ng Han Guan)

The markets have made it a thoroughly horrible time to float a business. The financial crisis apart, it’s hard to imagine conditions being less favourable.

Opening down on the back of Asia’s woes, the markets were at it again – though they had regained their losses by lunchtime. This will be the way of things for at least the next few months, perhaps for a lot longer.

Business owners contemplating a float would well advised to sit on their hands if they can afford to. It’s rather appropriate that the one company choosing not to heed that advice is CMC Markets, a patron saint of volatility.

Spreadbetting companies thrive on choppy markets. They generate the big returns that punters love... but also the losses they fear. Such is the gambler’s lot.

CMC should emerge capitalised at around £750m when its shares start trading, even with the markets in their current depressed state. The founder, and former Tory party treasurer, Peter Cruddas, will be worth around £200m. That’s a spectacular bet in anyone’s book.