CMC Connect Breakfast Briefing Event


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On Thursday, September 16, more than twenty London-based forex industry specialists attended an information breakfast to learn more about CMC Markets Connect and its recently launched Spot FX products.

After an introduction by CEO and Founder Lord Peter Cruddas, key staff at CMC Markets discussed how the company is working to close the liquidity gap in the forex market that has emerged in recent years. With the structural changes taking place in the market, some participants are struggling to find access to reliable and high quality cash flow, which at the same time has presented an opportunity for innovators like CMC Markets. With high volumes of retail flows, a wide range of liquidity partners and cutting edge technology, the company was well positioned to meet this challenge.

To that extent, in early 2021, CMC Markets Connect was launched as a new institutional brand – but the company’s broker-to-broker legacy is far more important than that. Founded in 1989, CMC integrated its first institutional client in 1996 and in 2015 became a liquidity provider for CFDs on several asset classes. Since then, more than 160 customers have connected to this liquidity, while due to customer demand and the company’s continued investment in technology, spot prices of 63 currency pairs and precious metals have increased. now been reintroduced into the offering after a decade of hiatus.

The institutional market requires a more nuanced approach and critical latency must be reduced. Historically, only part of the transaction has taken place in the LD4 data center, but optimization means this now takes over the entire process, saving precious microseconds on each transaction. Elements of the tech stack have also been upgraded. Thus, by using the latest technologies in artificial intelligence and machine learning from technology partner Quod Financial, existing strategies have been truly optimized.

Key points raised during the session included Richard Elston, Head of Institutions at CMC Markets Connect, noting that the improvements in latency meant that the company’s technology could execute transactions much faster than most large organizations. which often ran on systems that had not materially updated in a decade.

Artur Delijergijevs, Algorithmic Quant Trading Manager at CMC Markets, also made it clear to the public that it is the proprietary software that makes the real difference in performance. It is this IP address that holds the real value, because anyone can buy the necessary hardware, but performing it optimally makes the difference between success and failure when working in such a fast-paced environment.

The discussion also highlighted the significant investments of CMC Markets in the analysis of transaction costs. It’s something that facilitates open, transparent, and data-driven conversations with coverage partners, the result of which is invariably better service.

Importantly, CMC Markets Connect is in a rarefied position to fill this middle market liquidity gap where counterparties cannot directly access a prime broker. And unlike a Prime of Prime broker, CMC Markets doesn’t just recycle other people’s liquidity, but rather builds its own price range and corresponding depth on its own terms. Even if you have access to a PB, CMC Markets offers a solid liquidity proposition and if there is one point that cannot be made clear enough, it is that the company today is much more than just a business. retail broker.

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