IG Group has opened a waiting list for options trading in the UK, marking a significant expansion for the UK-listed broker, TradeInformer reported. The company has been planning to launch this service for over two years under its tastytrade brand.
Expansion Plans Underway
According to the press release, IG Group's expansion into the UK options market aligns with its strategy to broaden offerings. The tastytrade brand, which features educational content and trading tools, will lead the new venture. An event in early June in London, hosted by tastytrade in collaboration with Cboe and CME Group, aligns with the official launch date.
Options trading has gained substantial traction globally, particularly in the US and India, where traders use options to speculate on market indices and individual equities . The ability to leverage positions with options appeals to many investors seeking to maximize returns on their trades.
Despite the enthusiasm, IG Group faces challenges in adapting the US options trading model to the UK market. In the US, brokerages often generate revenue by selling trade flow to market makers. However, this practice is prohibited in the UK and EU, necessitating a different approach to monetization.
Last month, tastytrade partnered with Unusual Whales to enable users to trade directly on the options platform using tastytrade accounts. This collaboration promised to provide traders with better insights and a seamless trading experience.
Growth and Expansion
Scott Sheridan, the CEO of Tastytrade, expressed his enthusiasm, stating: "We're huge fans of Unusual Whales and the transparency they bring to the markets, enabling traders to make informed decisions." The integration of tastytrade's tools on the Unusual Whales platform seeks to provide enhanced trading insights for users.
In April, tastytrade opened a new 35,000-square-foot office space and studios in Chicago. Additionally, the firm pledged $600,000 to the Greenwood Project, a non-profit organization focused on promoting diversity in finance. JJ Kinahan, CEO of IG North America and President of tastytrade, highlighted the importance of driving positive change and supporting talented Black and Latino students to foster an inclusive financial services industry.
In 2021, IG Group acquired tastytrade to strengthen its presence in the retail options and futures market. This acquisition marked IG Group's entry into the US retail trading market, broadening its offerings for retail investors. tastytrade, now part of the IG Group, has diversified its trading options, leading to a significant surge in revenue from its US operations in FY23.
