MahiMarkets, an electronic trading technology provider , has enhanced its contracts for difference (CFDs) pricing product in order to give brokerages 'full autonomy' over creating their CFD pricing. The firm announced this on Tuesday in a statement shared with Finance Magnates.

According to MahiMarkets, brokerage firms have been depending on a single liquidity provider (LP) to offer pricing on their trading instruments. This created “a single point of failure,” the trading technology provider further noted, adding that the situation increased the chances for poor pricing “in illiquid hours.”

“With specialist CFD pricing techniques, MahiMarkets’ clients are now able to create a significant, measurable increase in B-book PnL,” MahiMarkets explained in the statement.

Furthermore, the technology provider pointed out that its latest product enhancement offers advantages, such as liquidity reduction and sophisticated skew drivers to maximize yield. Another benefit includes the delivery of very tight spreads with zero slippage to customers.

“It is even possible to create spreads that are tighter than those available from the LP,” MahiMarkets noted.

MahiMarket Seeks to Reserve Dependence on Single LP

Speaking on the new product, Andrew Morgan, the Chief Product Officer at MahiMarkets, explained that depending on a single LP can greatly impact a brokerage business should an outage or pricing issue occur.

“Our predictive pricing enables our clients to produce tailored pricing models for different types of liquidity, spread control, market volatility response and arbitrage protection, instead of delegating all of that to a single external LP,” Morgan noted.

Meanwhile, in December last year, multi-asset broker Eurotrader partnered with MahiMarkets to utilize the trading technology provider’s cross-asset trading solutions for better risk management and pricing. Dr Ozan Ozerk, the Founder of Eurotrader, noted that the move “is yet another firm step towards Eurotrader’s expansion goals.”

MahiMarkets shut down its trading platform in 2019 and switched to business-to-business technology provision. The company sold its retail FX trading businesses in the United Kingdom, Australia and New Zealand and later rebranded from MahiFX to MahiMarkets to reflect its new business identity.

Vida Markets' new hire; funding of TerraPay, Bidget; read today's news nuggets.