April 1, 2010 / 7:02 AM / 10 years ago

UPDATE 1-IG gets green light from regulator for U.S. launch

* Nadex receives change of regulatory designation

* Says U.S. unit will not be source of rev in near-term

(Adds details)

LONDON, April 1 (Reuters) - The world’s largest spread betting firm IG Group (IGG.L) said it had received the green light from regulators, allowing it to launch operations in the U.S., but warned it will not generate cash in the near-term.

IG said its U.S. retail-focused futures exchange, Nadex, has received the necessary change of designation which will enable it to accept clients via Futures Commission Merchants or brokers.

But delays to the launch of its operations and further discussions with FCMs mean that the unit will not be “a material source of revenue” in the near-term, said IG.

IG’s chief executive Tim Howkins told Reuters earlier this month that the group was stuck in “regulatory limbo” as it waited for approval for its online trading platform, which was acquired by IG in 2008.

He added that expansion in the U.S. will be a large focus for the group in the short to mid-term, as the company continues its decade of overseas growth to offset a maturing market in the UK.

IG said it will begin to offer Nadex products during April.

Reporting by Lorraine Turner

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