18 Aug, 2009 / GamblingCompliance Ltd. / Scott Longley
Betfair's financial trading offshoot Tradefair is in the process of developing a contracts for difference (CFD) exchange that the firm hopes will take on the online stockbrokers such as TD Waterhouse and Self-Trade.
A spokesperson for Tradefair said the new exchange was in beta form and would be launched in the first half of next year. The launch would mark a step up for Tradefair, which at present offers spread betting via a white label with London Capital Group which launched in 2007.
A spokesperson said Tradefair said the firm had been developing the product for the past 18 months, and that it hoped to provide competition to the online stockbrokers with a product that would be ideal for customers who did not wish to utilise the leverage that was part and parcel of traditional CFD trading.
"It's really quite revolutionary," said the spokesperson. "We're hoping it will transform the market. We're hoping to progress it, towards other non-leveraged products. It will enable people to come and buy and sell in the same way as the betting site, and without leverage. It will open it up for people, for brokers, for people who want to hedge. We are looking at the shares retail market. It's still developing. We're making sure we have the right proposition."
CFDs are margin products which allow traders to buy and sell shares without having to physically own them. Unlike futures contracts, there is no fixed expiry date or contract size.
... dabei hatte eigentlich keiner mehr daran geglaubt, da auch noch der Ankündigung im Januar dieses Jahres nicht wirklich viel passierte. Nun aber hat LMAX (so heisst die CFD Exchange) die Freigabe der FSA zum Betrieb eines Multilateralen Trading Facilities erhalten.
Online sports betting exchange operator Betfair is preparing to launch a multilateral financial trading facility for CFDs via its subsidiary LMAX, that is planned to compete with the London Stock Exchange.
LMAX Ltd. has secured FSA approval on July 27th to offer CFDs, financial spread betting and rolling spot forex contracts. The company was formed by Betfair in 2007 to provide online retail financial trading. The new CFD platform – the London multi-asset Exchange (LMAX) – will offer broking services as well as training and educational services related to the provision of multi-asset broking. The company also confirmed that immediately prior to FSA approval, Goldman Sachs Group Inc. acquired a 12.5% stake in Betfair Ltd.'s stock exchange for an undisclosed sum, with Betfair retaining a majority shareholding.
The company hopes that the exchange will take on the online stockbrokers such as TD Waterhouse and Self-Trade. Betfair is currently a white-label partner London Capital Group – operator of the Capital Spreads website, however the new exchange platform will be unique and offer more trading products
'It's really quite revolutionary,' said the spokesperson. 'We're hoping it will transform the market. We're hoping to progress it, towards other non-leveraged products. It will enable people to come and buy and sell in the same way as the betting site, and without leverage. It will open it up for people, for brokers, for people who want to hedge. We are looking at the shares retail market. It's still developing. We're making sure we have the right proposition.'.
The trading platform will be one of a growing number of new exchanges in London that have been setup since pan-European regulation opened the market to competition in 2007. American stock exchange operator NYSE Euronext also launched a division in the City in July, targeted at international investors who would stand to benefit from a 'much broader, more diverse and more liquid investor pool than on many of our competitors'.
Multilateral trading facilities such as Chi-X and BATS have gained market share in the last few years as revenues at the London Stock Exchange fell. The LSE announced a 13% layoff of its staff in May in an effort to minimise costs.
Ziemlich mutig, was der Buchmacher da vor hat. Die LSE selbst hat ihr Projekt "Exchange Traded CFDs" begraben, ebenso die Börse Stuttgart/ Euwax.
Bin mal gespannt, wie sie Liquidität auf die Plattform bekommen und wie deren IT Infrastruktur aussieht.
Jetzt tun sie es anscheinend doch...
Ankündigung: ©GamblingCompliance Ltd. 2009
Betfair Hones CFD Exchange Platform For Tradefair
18 Aug, 2009 / GamblingCompliance Ltd. / Scott Longley
Betfair's financial trading offshoot Tradefair is in the process of developing a contracts for difference (CFD) exchange that the firm hopes will take on the online stockbrokers such as TD Waterhouse and Self-Trade.
A spokesperson for Tradefair said the new exchange was in beta form and would be launched in the first half of next year. The launch would mark a step up for Tradefair, which at present offers spread betting via a white label with London Capital Group which launched in 2007.
A spokesperson said Tradefair said the firm had been developing the product for the past 18 months, and that it hoped to provide competition to the online stockbrokers with a product that would be ideal for customers who did not wish to utilise the leverage that was part and parcel of traditional CFD trading.
"It's really quite revolutionary," said the spokesperson. "We're hoping it will transform the market. We're hoping to progress it, towards other non-leveraged products. It will enable people to come and buy and sell in the same way as the betting site, and without leverage. It will open it up for people, for brokers, for people who want to hedge. We are looking at the shares retail market. It's still developing. We're making sure we have the right proposition."
CFDs are margin products which allow traders to buy and sell shares without having to physically own them. Unlike futures contracts, there is no fixed expiry date or contract size.
... dabei hatte eigentlich keiner mehr daran geglaubt, da auch noch der Ankündigung im Januar dieses Jahres nicht wirklich viel passierte. Nun aber hat LMAX (so heisst die CFD Exchange) die Freigabe der FSA zum Betrieb eines Multilateralen Trading Facilities erhalten.
Betfair's CFD Exchange Platform gains FSA approval
Online sports betting exchange operator Betfair is preparing to launch a multilateral financial trading facility for CFDs via its subsidiary LMAX, that is planned to compete with the London Stock Exchange.
LMAX Ltd. has secured FSA approval on July 27th to offer CFDs, financial spread betting and rolling spot forex contracts. The company was formed by Betfair in 2007 to provide online retail financial trading. The new CFD platform – the London multi-asset Exchange (LMAX) – will offer broking services as well as training and educational services related to the provision of multi-asset broking. The company also confirmed that immediately prior to FSA approval, Goldman Sachs Group Inc. acquired a 12.5% stake in Betfair Ltd.'s stock exchange for an undisclosed sum, with Betfair retaining a majority shareholding.
The company hopes that the exchange will take on the online stockbrokers such as TD Waterhouse and Self-Trade. Betfair is currently a white-label partner London Capital Group – operator of the Capital Spreads website, however the new exchange platform will be unique and offer more trading products
'It's really quite revolutionary,' said the spokesperson. 'We're hoping it will transform the market. We're hoping to progress it, towards other non-leveraged products. It will enable people to come and buy and sell in the same way as the betting site, and without leverage. It will open it up for people, for brokers, for people who want to hedge. We are looking at the shares retail market. It's still developing. We're making sure we have the right proposition.'.
The trading platform will be one of a growing number of new exchanges in London that have been setup since pan-European regulation opened the market to competition in 2007. American stock exchange operator NYSE Euronext also launched a division in the City in July, targeted at international investors who would stand to benefit from a 'much broader, more diverse and more liquid investor pool than on many of our competitors'.
Multilateral trading facilities such as Chi-X and BATS have gained market share in the last few years as revenues at the London Stock Exchange fell. The LSE announced a 13% layoff of its staff in May in an effort to minimise costs.
Ziemlich mutig, was der Buchmacher da vor hat. Die LSE selbst hat ihr Projekt "Exchange Traded CFDs" begraben, ebenso die Börse Stuttgart/ Euwax.
Bin mal gespannt, wie sie Liquidität auf die Plattform bekommen und wie deren IT Infrastruktur aussieht.
Bloomberg zu LMAX (London Multi-Asset Exchange)
http://www.lmax.com/