Dear Trader

On 27th July 2007, CMC markets will be making the following changes to our UK Sector spreadbets in order to improve both the accuracy of Sector pricing and speed of execution.

How will UK Sectors be quoted?

Currently we offer a fixed spread on all UK Sectors. This form of pricing may not always accurately reflect the pricing of the underlying Share bet within a Sector.

From 27th July 2007, CMC Markets will offer a new and dynamic form of UK Sector pricing. Spreads on UK Sectors shall no longer be fixed, but be calculated on a variable basis. The new spread will depend on the spreads of the individual constituents that comprise the sector as well as their respective weighting. The new spread will reflect changes in the prices of the constituent Share bets on a real time basis.

Example - UKMINING

Rio Tinto (RIO) is a major constituent of the UK Mining Sector. If during the course of trading RIO widens its spread, the UKMINING bet may in all likelihood widen its spread accordingly. As mentioned previously, this will depend on both the weighting of the constituent Share in comparison to the Sector bet as well as the movements of the other constituents during the respective time period.

Alternatively, should the spread of the constituent narrow, such a change will also be reflected in the respective sector, subject to the same conditions as mentioned above.

How does this affect you?

A variable spread for UK Sectors will mean a more accurate pricing structure. It will reduce the instances of re-quoting on UK Sector prices, particularly during volatile periods in the market.

Change in Spreads

Below are a few examples of the changes in our UK sector spreads.

If you have any questions regarding the Sector changes above, please contact the Spreadbet dealing desk in London on +44 (0)207 170 8202.

Best regards
The team at CMC Markets