London-listed brokerage company CMC Markets has announced that it is adding a new suite to its institutional offering. The firm is deploying its Prime Derivatives trading platform for professional individual and institutional clients.
The brokerage is, therefore, expanding its list of institutional products to include single stock CFD trading. The company has been offering its retail clients a vast choice of shares for a number of years. Its current offering is widely geographically distributed with over 10,000 products.
Direct Market Access CFDs
CMC Markets states in its official announcement about Prime Derivatives that the product works on an STP (Straight-Through-Processing) basis. This means that the orders which clients make are transferred onto the market.
Direct Market Access (DMA) CFDs have been becoming more and more popular in recent years. CMC Markets aims to attract more clients to its institutional offering by expanding its product portfolio.
Multi-asset offerings have been essential for the evolution of the retail forex and CFDs brokerage industry for the past several years. CMC’s move to offer the product to its institutional clients allows the company to compete with true multi-asset liquidity providers, which are not that many.
Finance Magnates has reached out to the company asking which markets will the offering cover and will update the article as we receive an answer.
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The Prime Derivatives platform of CMC Markets enables clients to access global single stock CFDs. The orders are being directed to the market via smart order routers which are connected to a wide array of marketplaces.
The company shared that aside from traditional exchange-traded venues and MTFs, the platform also routes orders to dark pools. CMC Markets’ Prime Derivatives platform provides access to open and closing auctions.
A long-disputed disadvantage for retail traders has been their lack of ability to access the US pre and post open market. The company states that the platform supports a wide range of order types as well as access to algorithmic trading.
The Prime Derivatives platform delivers to clients charting and news services. Brokers, on the other hand, get access to back office reporting tools. Customers can trade directly or via FIX API.
The Head of Institutional at CMC Markets, Richard Elston, commented: “Prime Brokers increasingly want to focus their attention on their very largest customers, meaning market access has become more challenging in recent years for many smaller participants.”
“Prime Derivatives leverages our capital, technological expertise and market standing to better connect many of those who have found themselves facing less favourable commercial terms and market access as a result of recent change.”