Brokers Update: As Volatility Settles In Brokers are Revamping Solutions

As markets are getting rattled by emerging markets uncertainty some brokers are updating trading conditions to reflect increased volatility

As global stock markets are getting rattled by the Chinese yuan devaluation and the spillover effects to other emerging markets, brokers in the industry continue updating their offerings as major deals are getting sealed.

FXNet responds to volatility in the ruble

The Russian ruble has continued its collapse in light of fresh lows in the ongoing oil prices slump. Daniel Hewitt from Emerging Markets at Barclays Research commented in a recent note about the Russian economy, “The drop in global oil prices is a factor extending the duration of the recession in Russia. Imports, consumption and investment have already largely adjusted to previous declines in oil prices and the impact of sanctions. However, the renewed oil prices declines in Q3 appear to be forcing further adjustments in the Russian ruble.”

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Renewed oil prices declines in Q3 appear to be forcing further adjustments in the Russian ruble

As a result of the volatile market, FxNet has increased its spreads on the EUR/RUB and USD/RUB pairs to 100 pips starting from yesterday (Monday, August 24th).

Taking advantage of volatility

Adding to volatility is a readjustment in pricing for a number of major currency pairs, namely involving the U.S. dollar. Just as the analytics team at Barclays was continuing to predict that the Fed will raise rates in September, after yesterday’s market rout the call of the bank has been moved to the first quarter of 2016.

Unlike with the Swiss National Bank induced turmoil, this time around, brokers seem to be capitalizing on the situation with a number of industry sources reporting heavy volumes which generated substantial revenues for brokers yesterday.

Lightspeed Trading, which operates a flagship trading platform, also announced that Monday’s trading day featured massive market movements and periods of intense market activity and volume, especially at the market open and market close.

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Playtech shareholders approve acquisition of Plus500

Playtech’s shareholders have voted on the acquisition of Plus500, stamping a unanimous approval seal on the deal and leading the gaming company into further diversifying its product offering into retail financial trading. After the vote Playtech will be building a synergy between its existing brand targeting different jurisdictions and customers with its portfolio now including, AvaTrade and Plus500.

Invast revamps website

Australian brokerage Invast has launched a revamped website to cater to the professional side of the trading industry. The firm has communicated in a statement on the launch that it is aiming to build tighter relationships with sophisticated clients and institutionals.

Invast recognized a growing opportunity in the institutional space

The CEO of the company Brendan Gunn stated in the announcement, “We’ve realized long ago that our website needs a major overhaul. We have recognized a growing opportunity in the institutional space and the website is the next step in fulfilling the long term plans of the firm.”

Expansion in Poland – HotForex and XTB

In the meantime HotForex has announced vibrant growth of its staff based in Poland justified the company moving into new office premises in the city of Polish broker XTB, which has added some new CFDs to its offering including three new stocks – French Engie, Portuguese Pharol SGPS and Czech O2 telecom company.

The changes reflect changes in the top most traded companies on the given stock markets and are substituting GDF SUEZ in France, Portuguese PT Telecom and the instrument on the Czech Stock Exchange SPTT, which has been moved into close only mode. The company also announced that it is widening the spread on the EURCZK currency pair, reflecting lower liquidity in the instrument.

CopyFX introduces new risk management tool

Not all changes have been reflecting increased volatility. Social trading platform CopyFX has introduced a new feature which captures the underlying ratio between the funds of the investor and the trader he is following to possibly get a more appropriate risk level and a net result which is much closer to the performance of the trade leader.

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