CMC Markets, the global provider of liquidity and white-label trading solutions to brokerage firms has expanded its suite of tradable instruments on CMC Connect to include cash equities.
Currently, the platform offers access to over 5000 instruments, including individual stocks and ETFs, enhancing its existing Contract for Difference (CFDs) and spot FX offerings, according to a statement shared with Finance Magnates. The platform has hinted at future expansion to include more equities and diverse asset classes in the upcoming year.
Kim Ljung Andersen, the Head of Institutional Product Solutions at CMC Connect, mentioned: “This launch marks another significant milestone for CMC Connect as we look to build out our multi-asset, multi-currency functionality for clients of all sizes. The addition of cash instruments has been proving invaluable as we look to grow the number of institutions for which we provide liquidity solutions.”
CMC Markets Embraces Cash Trading amid Global Expansion
CMC Markets UK will be involved in trading cash products for its clients. Its proprietary technology allows for the automatic handling of complete or partial orders. Following the debut of US cash equities , CMC Markets plans to incorporate UK cash equities through CMC Connect next year.
CMC Connect recently entered into a strategic partnership with Lucera Financial Infrastructures. This collaboration aims to bolster CMC's FX connectivity through Lucera's LumeFX suite. It focuses on serving the broader FX market clientele.
In September, CMC Markets launched CMC Invest, a stock trading platform catering to investors in Singapore and the broader Southeast Asia region. According to the company, CMC Markets plans to expand this service to include wealth management and OTC options, subject to necessary licenses.
The partnership with Lucera signifies a pivotal step toward fortifying the firm's in-house forex connectivity, aligning with its vision to expand service provision to a wider spectrum of potential clients.
CMC Markets' Financial Outlook
Last month, CMC Markets released its interim results for the first half of the fiscal year 2024, Finance Magnates reported. The company reported a significant downturn in net operating revenue, marking a decline of 20% year-on-year to £122.6 million. The plunge in trading net revenue by 32% to £87.4 million alongside a decrease of 7% in active clients contributed to a pre-tax loss of £2 million for the period.
While trading and investing net revenues took a hit, the company experienced a considerable surge in "other income" due to a rise in global interest rates. However, high operating costs, including a £5.3 million impairment linked to internally developed trading platforms, pushed the company further into losses.
