Spectrum launches as a new pan-European trading venue for retail investors trading securitised derivatives, with the platform available today. The new venue is underpinned by cutting-edge technology, and brings innovation to the market through its ability to offer 24/5 access to the markets for retail investors.
At launch, the products issued on Spectrum are leveraged turbo warrants (turbo24s), a familiar and popular product traded extensively by retail investors across Europe. The turbo24s offered cover indices, currencies and commodities.
The new trading venue will appeal to financial institutions in Europe who are serving the large market for on-exchange global leveraged products. The company is authorised by BaFin as an MTF under the EU’s Markets in Financial Instruments Directive (“MiFID”). It is a wholly owned subsidiary of IG Group, a world leader in derivatives trading and a FTSE 250 company.
Nicky Maan, CEO of Spectrum commented: “We have developed our venue with a retail investor ethos at its heart. It’s designed to meet the ever-evolving demands for more sophisticated, safer trading, offering an innovative experience in a meticulously transparent environment.
“That’s why we offer 24-hour trading, as well as powerful, robust trading technology and an appealing product range. We want to grow this European market by providing efficiency and simplicity to brokers and consequently their retail investors, while maintaining the inherent advantages of on-venue trading.”
As a new venue for on-exchange trading in the EU, Spectrum is looking to the future with ambition. New products are planned to be added onto the platform in the medium to long term as more venue participants are brought on board. Spectrum has also undertaken intense market research with key industry participants and retail investors across Europe, which unveiled a strong desire for tailored pan-European leveraged products on a 24-hour basis.
The platform has been designed to provide an efficient connection for brokers and offers a competitive fee structure compared to the existing market. The new trading venue uses a transparent order book; orders will remain anonymous but with pre- and post-trade information made public. The venue offers bilateral settlement between members, with turbo24s settled within Clearstream.
The management team at Spectrum comes from across the trading and exchanges industry and combines traditional exchange experience and retail investor knowledge and expertise.
The turbo24s will be available to trade on the venue across the following eight European markets: France, Germany, Ireland, Italy, Norway, Spain, Sweden and The Netherlands.