CMC Markets, the UK headquartered leading provider of CFD trading service revealed in recent announcement that it has added 17 new share baskets to its trading platform. To those unfamiliar with the term, Basket is a terminology used to refer to a collection of multiple stocks or other tradable instruments which share a similar background. Traders placed in basket are usually executed by a special program which executes multiple trade orders simultaneously. Each of these 17 newly launched share baskets consist of multiple stocks with similar background from across wide range of industries such as gaming, banking and renewable energy. With launch of this new service, the firm clients now gain the ability to gain continuous exposure to trending sectors with a single trade. Each of these 17 baskets contain up to maximum of 50 stocks which share a particular common background and each stock in the basket is arranged via tiered weighting.
Given the fact that the newly launched share baskets were developed internally, the firm has mentioned that further baskets can also be added quickly depending upon demand from its clients. The firm also stated that it has partnered with business information provider IHS Markit, a leading source of independent global information provider and valuation services in order to ensure maximum efficiency in performance and maintenance of its exchange traded products and custom baskets while also focusing on maintaining smooth handling off all its corporate activities. The common theme based on which 17 new baskets were added are Cannabis, 5G, Big Tech, Cyber Security, Mobile Payments, Driverless Cars, Gaming, US Banks, Renewable Energy, China Tech, Streaming Media, Social Media, Software as a Service, Automation & Robotics, UK Banks, European Banks and European Automobiles. Given the tiered weighting in design and arrangement of instruments in all of these baskets conglomerates operating across multiple sectors can now easily avoid large price movements for from having a disproportionate influence on the basket’s valuation.
Speaking about the addition of these new share baskets, Simon Campbell – Group Head of Trading at CMC Markets said, “As a business we are committed to driving client success and continue to build products with this mission in mind. We see our clients’ interests pique when certain industries come into focus and we wanted to be able to offer an alternative way for our clients to trade on the opportunity. With each of these high-profile industries being well covered in the mainstream media, there’s no shortage of information to help form trading decisions. So, whether a sector’s valuation is rising or falling, these baskets allow our clients to easily ‘trade the trend’ by taking a long or a short position accordingly”.
Speaking about the partnership between two firms, Christopher Hare – Global Head of Product Development for DeltaOne at IHS Markit said, “We are excited to deliver our expertise in portfolio and index valuation by collaborating with well-established providers like CMC Markets. Working together, we will advance the availability of innovative investments which bring greater flexibility to global financial markets”.
