- 70 underlying stocks with large turnover volume
- Most represented sectors are IT, Banking and Commerce
- Leverage enables participation even in high-priced stocks
Spectrum Markets, the pan-European trading venue for securitised derivatives, is offering investors another trading opportunity using turbos. In addition to indices, foreign exchange and commodities, products linked to selected equities from Europe and the U.S. are now tradable.
"In addition to indices, which account for around 40-45 percent of general trading volume on the main market places in Europe, equity turbos are traded by a good third of market participants via leveraged products”, explains Eren Eraslan, Head of Product Innovation at Spectrum Markets. "This is our response to a growing demand."
At launch, products linked to 70 stocks are available on the platform. These stocks are the most popular from the U.S. and Europe, which currently see high trading volume through securitised derivatives, were selected for this purpose.
"Usually, it is only a small number of stocks that account for about 90 percent of the trading volume," Eraslan continues. "An analysis in the affiliated countries of our pan-European trading platform - including Germany, France, Italy, Spain, Sweden, Finland, Norway, the Netherlands, Ireland and Belgium - clearly indicates as much."
Currently the best represented sectors are IT (19 stocks), bank/finance (11 stocks) and commerce/e-commerce (8 stocks). Stocks include well-known tech favourites like Alphabet, Amazon, and Tesla, alongside longstanding corporations like LVMH Group, The Coca-Cola-Company, AstraZeneca and Deutsche Bank. Investors will also be able to access niche innovators like plant-based meat substitute maker Beyond Meat, Dutch payments group Adyen, and Chinese electric vehicle company NIO.
Turbo certificates on stocks enable as well equity investors to hedge their positions. Due to the underlying leverage of turbo certificates, it also allows retail investors to invest just a fraction of the stock price to get exposure to the movements in the underlying equity price.
“We have further expanded our range of products with this latest addition. The aim is to successively add a selective number of shares in response to customer demand," says Eraslan.
About Spectrum Markets
Spectrum Markets is the trading name of Spectrum MTF Operator GmbH. Headquartered in Frankfurt am Main, Germany, it is a pan-European trading venue for securitised derivatives aimed at financial institutions and their retail investors. Since launch, trading has been available in: Germany, France, Italy, Spain, Sweden, Norway, the Netherlands, Ireland, and Finland
Regulated by BaFin and MiFID II compliant, the exchange uses a uniquely open architecture system to allow investors to trade with increased choice, control and stability. Through its pan-European ISIN, 24/5 trading services and its own proprietary venue, Spectrum enables a guaranteed baseline level of liquidity over a range of products and is able to swiftly and safely match a significant number of orders and process multiple quotes every second.
Further information can be found at spectrum-markets.com
T: +44 203 778 1103
All information contained herein is for information purpose only and addresses exclusively Members of Spectrum Markets and persons interested in becoming a Member of Spectrum Markets. Nothing herein constitutes an offer to sell or a solicitation of an offer to purchase any securitized derivatives listed on Spectrum Markets or any product described herein. Spectrum Markets does not provide financial services, such as investment advice or investment brokering. Prospective retail investors can trade such products only with their brokers. The information herein does not constitute investment advice or an investment recommendation. Any information provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. Turbo Warrants are complex financial instruments and investors may experience a total loss.