CMC Markets

CMC Markets

September 30, 2010 07:48 ET

CMC Markets Launches Precision Pricing and Automated Execution on New Spread Betting Platform

LONDON, UNITED KINGDOM--(Marketwire - Sept. 30, 2010) - CMC Markets, a leading provider of financial spread betting in the UK has announced the launch of institutional 'precision pricing' and automated execution to retail traders on its next generation spread betting platform.

'Precision pricing' is one of the latest initiatives by CMC Markets to offer their clients the most accurate, reliable and competitive pricing. An additional decimal point has been added to many instruments which means traders are able to see the full quote and have a higher level of transparency. EUR/USD, USD/GBP are now quoted to 5 decimal points, USD/JPY to 3 and shares as much as 1/1000th of a cent.

Executive Chairman and founder of CMC Markets, Peter Cruddas, commented: "The additional decimal point means that there is no price rounding which is a hidden cost to spread betters. If, for example the underlying market is 10.25-11.75 then a rounded price would be quoted as 10-12. This is called price rounding and deprives clients of a better execution price. At CMC Markets, we quote more decimals so they are trading on the most competitive price which can save them money. Precision pricing is also extremely important in the execution of stop losses. For example, if a stop loss is placed at 10, and the spread betting company operates a rounding policy then the stop loss could be executed at 10, whilst the underlying market is 10.25, even though the market may not have traded there."

Precision pricing is part of the new pricing engine that is available on the new CMC Markets spread betting platform for web and iPhone®. The new pricing engine ensures that all trades are executed automatically with no dealer intervention and no re-quotes.

Peter Cruddas commented further: "We don't believe a 'kill or fill' policy is in the best interests of our clients. We operate a 'fill or fill' approach to execution, regardless of market volatility or trading conditions."

Alongside the new precision pricing and automated execution, CMC Markets have also cut spreads to ensure clients have access to consistently competitive pricing. The UK 100 index spread is 1.3, US 30 index is 2.5 points, Crude oil 4 points and EUR/USD 1.6 points.

"Too often firms claim to offer the tightest spreads or the lowest prices, but trading companies aren't always able to live up to these expectations during busy or volatile times. CMC Markets with its new precision pricing is leading the way by fully automating price execution and publishing the results for all to see and compare. With no re-quotes and 100% auto-execution there will always be a competitive price for clients to trade on." Peter Cruddas.

Spread betting is a leveraged product and carries a high level of risk to your capital. It is possible to lose more than your initial investment. Spread betting may not be suitable for all investors, so ensure you understand the risks involved and seek independent advice if necessary.

CMC Markets is a leading global provider of financial spread betting, CFD trading and foreign exchange (FX). Since Peter Cruddas founded CMC Markets in 1989, the company now services more than 75,000 clients worldwide, who placed a total of 26 million trades last year. CMC Markets have recently launched their new online spread betting platform and iPhone app to the UK market. For further information on spread betting with CMC Markets please visit www.cmcmarkets.co.uk.

CMC Markets UK Plc and CMC Spreadbet Plc (collectively known as CMC Markets) are authorised and regulated in the UK by the Financial Services Authority.

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