CMC Markets has launched ‘Signature’ share basket CFDs, with portfolios constructed using institutional-style analysis in a unique collaboration with industry experts.
Aiming to offer intelligent market exposure supported by a technical portfolio strategy, CMC Markets’ baskets offer lower holding costs than self-constructed portfolios, according to the firm.
Behind the newest addition to CMC Markets’ index products are Julius de Kempenaer and Trevor Neil, industry veterans with over 75 years of trading experience combined.
They spent the last 16 years developing the concept of Relative Rotation Graphs, which is now available on a range of leading market data platforms including Bloomberg terminals and REFINITIV Eikon.
The first set of these signature baskets are based on Relative Rotation Graphs. These identify those stocks which are exhibiting positive momentum when compared to their benchmark indices and purposely avoid underperformers. According to the firm, backtesting has shown that the strategy historically outperformed the wider market.
Ed Gotham, Head of Growth at CMC Markets, commented: “We have developed these unique signature share baskets in conjunction with recognized market experts to allow our clients to follow a specific trading methodology. We know they are always keen to explore new opportunities and the early response to these baskets, designed to focus on strong relative momentum stocks from a range of equity indices, has already been encouraging.”
Julius de Kempenaer of RRG Research said: “Products like this are designed to offer another layer of flexibility and recognize the increasingly sophisticated needs of CMC’s clients. They understand that investment professionals have no shortage of portfolio methodologies at their disposal, so this addition means we are able to provide yet another genuine innovation for those using CMC’s trading platform.”
The RRG portfolio methodology looks to give traders exposure to those assets exhibiting strong relative momentum price movements versus their benchmark.
CMC’s UK 350 RRG Momentum+ basket captures positive momentum from a selection of the largest UK stocks, creating an equally weighted portfolio of the 10 most promising prospects, with the basket rebalanced quarterly.
The seven RRG Momentum+ share baskets on offer are drawn from major benchmark equity indices in the USA, Australia, Germany, Hong Kong and the United Kingdom.
A range of 28 unique share baskets is now offered by CMC Markets, giving clients the opportunity to gain diversified exposure to an industry with a single trade.
CMC Markets undertakes a range of initiatives to explore the topical themes which are impacting our industry. In March 2021, as part of the firm’s celebration of International Women’s Day, Camilla Boldracchi of the CMC Markets Connect team, coordinated a virtual panel discussion looking at the role the blockchain is likely to play in the future of digital settlements.