iSAM Securities has launched CFDs on futures to meet what it describes as growing client demand for futures-style exposure with simpler handling.
The CFDs include an auto-rolling feature that aims to remove the need for clients to monitor and switch contracts at expiry while keeping continuous exposure to the underlying futures market.
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More CFD brokers are showing interest in the futures space. Recently, NinjaTrader expanded its futures offering into Europe through Payward Europe Digital Solutions, a MiFID-regulated investment firm, initially covering the Netherlands and Germany.
The brokers are increasingly adding futures and options in what is seen as a response to tighter regulatory restrictions on over-the-counter derivatives. A survey by Acuiti for CME Group indicating that four in five firms not currently offering listed products are planning or evaluating such a move.
Integration with Existing Infrastructure
iSAM Securities says this structure offers exposure to futures prices while keeping the operational model in a familiar CFD format for brokers and professional traders. The futures CFDs sit alongside iSAM Securities’ current liquidity and execution services, which use in-house pricing technology.
According to the company, the online trading firm positions the new instruments as an extension of its existing liquidity suite. Clients can access the CFDs on futures through their current accounts, so they do not need additional operational setups to trade the product.
The firm offers CFDs through entities regulated by the Securities and Futures Commission in Hong Kong and the Commodity Futures Trading Commission in the United States, as well as a Cayman Islands Monetary Authority registered entity.
The firm has in parallel invested in risk and analytics tools, including its RADAR real-time risk dashboard and Surge analytics platform, which it distributes directly and through integrations such as the cTrader link with Spotware.
Volatility Highlights Demand for Consistent Pricing
iSAM Securities notes that recent weeks of elevated market volatility have highlighted the importance of consistent pricing, strong risk controls and reliable trading counterparties.
Recently, iSAM relocated to a new London headquarters to support the expansion of its operations and growing global demand for its services. It follows its opening of a Cyprus office in Limassol last May and its move to a larger office in Hong Kong in June.
The Limassol office was established to support clients in Europe, the Middle East and Africa. The group also maintains offices in the United States and the Cayman Islands.