CMC Markets, an online brokerage offorex and contracts for difference (CFDs), has launched institutional trading services, online finance media Finance Magnates reported on Monday. The broker will use a new application program interface (API) technology for the purpose, designed for institutional clients, such as banks, brokers, funds and trading desks.
“While the API does carry FX, we are keen to promote the CFD side of the business at the moment. Given the fact that we have just gone through an IPO and our market cap is over £700 million, we believe that CMC Markets is in an advantageous position as a leading brokerage and a reliable counterpart in the market,” said Richard Elston, head of institutional at CMC Markets, as quoted by Finance Magnates.
CMC Markets already serves about nine active institutional clients. Initially, the brokerage will provide just several CFDs on indices, commodities, and treasuries, not only globally popular instruments, but also local ones. However, the brokerage intends to expand its offering by including forex instruments and single stock CFDs in the upcoming months.
In addition to API, CMC Markets offers grey label products for introducing brokers (IBs) and white label partners. The broker is working on consolidating the two markets, the media said, without providing details. Once its products get well recognized, CMC Markets will start developing custom-made solutions for asset managers and hedge funds.
“We think there is a mid-market gap out there and while there are other players and peers that have entered into this space over the course of the last few years the mid-market gap has become more apparent in the wake of the SNB,” Elston said. “We think that our technology reputation and our financial strength will spark interest in the FX product that we are planning to launch later this year which is specifically designed to fill the mid-market gap,” he added.
CMC Markets holds a license from the UK’s Financial Conduct Authority (FCA). The brokerage got listed on the London Stock Exchange (LSE) in February this year, raising about £218 million. It serves retail and institutional clients and has offices in 14 countries with a focus on the markets in the UK, Australia, Germany and Singapore.
The broker offers retail trading in in more than 10,000 financial instruments, including forex, shares, indices, commodities and treasuries through CFDs, spread betting. It launched trading in binary options at the end of last month. All products are available via its proprietary trading platform Next Generation, accessible via both desktop and mobile devices.
Source: Finance Magnates