IG Markets Multi-Venue Technology

November 16, 2009Andy No Comments »

IG Markets have just upgraded their direct market access offering to include the ability for traders to benefit from access to UK and European equities via Chi-X and Turquoise, Europe’s leading two MTFs.

Announcement letter follows below -:

Over the past few years there has been a rapid expansion of Multilateral Trading Facilities (MTFs), which function as alternate stock exchanges for traders. These venues can provide better prices than the primary exchanges and can account for up to 40% of liquidity.

IG Market’s new multi-venue technology allows clients to benefit from these MTFs.
From Monday 16 November 2009 you will be able to benefit from access to over 1450 UK and European equities via Chi-X and Turquoise, Europe’s leading two MTFs.

PureDMA

PureDMA will now instantly search all three venues, find the best prices and include them in the order book you see in PureDeal. When you click on one of these prices, your order will be routed to the venue with the best execution.

New-look L2 order books

L2 Dealer will now instantly search all available exchanges to find the best prices. On your L2 screen you can display these in a hybrid format, with the best prices from all available exchanges listed in a single order book. Alternatively, you can view the individual order books for any available exchanges.

Increased chance of getting your order filled

The Smart Order Router will send your order to the exchanges offering the best execution. This may mean your order is split across more than one exchange, but you will still receive a single fill. If your requested price or volume is not available in the current order book and your order cannot be immediately filled, it will be routed to the primary exchange where the greatest level of liquidity is generally available.

Free live feeds

We are now able to offer free live prices on PureDeal and PureDMA using MTF data on top UK and European shares. Consequently, traders who do not wish to pay for the live data from the major exchanges will be able to view the live prices from the no-fee MTFs. With over 1450 UK and European shares covered this will provide free live data on most of UK and Europe’s top stocks.

In addition, if you place an order using the free prices, and a better price exists on a fee-liable venue, your order will be processed at the better price, whether it is visible to you or not.

Same trades, better prices

Our new technology works behind-the-scenes, exploring a variety of venues, sourcing the best price, and displaying its findings on your L2 screen. You will only notice one difference to your trading experience: even better prices on share CFDs.
If you are using PureDeal and not PureDMA, you will still benefit from the tighter market spreads that our unique price feed from three venues provides.

Editor Note: This news from IG Markets is a breakthrough development for the CFD industry and pushes the standards up a notch for other providers. Over the past few years there has been a rapid expansion of MTFs, which function as an alternative to traditional stock exchanges for traders; often providing better prices than the primary exchanges and accounting for up to 40% of a share’s overall liquidity. Access to the Chi-X and Turquoise European exchanges means that traders can now benefit from even tighter spreads brought from the additional liquidity that these exchanges bring to the table; just imagine that a month ago traders’ access was offered only on the London Stock Exchange and other established exchanges in Europe.

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