One of the leading online brokerages, FXCM Inc (NYSE:FXCM) has just announced that the company’s contract for difference (CFD) trading technology has been integrated into the services of FlexTrade Systems. The development comes only a couple of days after to its clients trading CFDs.
FlexTrade is addressing a set of technological challenges for financial institutions in the execution and order management for equities, foreign exchange, options, futures and fixed income markets.
The Managing Director of FlexTrade APAC in Singapore, Manish Kedia, explained that the integration of FXCM’s CFD pricing into FlexTrade’s order management system (OMS) and retail trading solution is a best of both worlds arrangement for the company’s brokerage clients.
“When it comes to CFDs, FXCM is ahead of the curve in terms of liquidity and pricing. And when you combine it with our own technology, it’s a win-win situation for clients interested in a comprehensive brokerage solution for FX, Precious Metals and CFDs,” he said.
The development serves as an expansion for FXCM Pro into the institutional space of CFDs trading. With the margin on CFDs trades being much higher than in forex trading, the product has become increasingly attractive for institutional brokers.
After this partnership with FXCM Inc (NYSE:FXCM), FlexTrade has become one of the first institutional Order Management Systems (OMS) that is geared to deliver CFDs to their clients.
The brokerage clients of FlexTrade will be able to use FlexTrade’s OMS and retail trading solution for CFDs pricing and liquidity. Brokers also may redistribute to their own clients alongside FX, allowing for the risk to be managed in-house. Outgoing price feeds are all passing through one single technology platform.
The Global Head of FXCM Pro, Brandon Mulvihill, elaborated: “Of the top tier FX aggregators, FlexTrade has been among the first of its kind to recognize fundamental differences that exist between price making in FX and CFDs.”
“Their comprehension of structural distinctions with respect to clearing and redistribution of market data allowed us to collaborate together in a way that precisely addresses demand from the brokerage community,” he elaborated.
FXCM Pro is fully focused on the wholesale business of FXCM Inc., with its offering delivering a number of products including indices, energy, treasuries and precious metals.