- Financial institutions can now offer retail clients long and short leveraged exposure to Bitcoin and Ethereum as underlying markets
- Provides retail investors with tools to better control the risk of a volatile asset
- On-venue trading offers enhanced regulatory protection for investors
Spectrum Markets, the pan-European trading venue for securitised derivatives, announced today its product offering has widened to include cryptocurrencies as an underlying, with turbo warrants on Bitcoin and Ethereum now available.
The new products expand Spectrum’s existing suite of Turbo24s and allow brokers to offer their clients long or short leveraged exposure to the price of the two most popular cryptocurrencies.
This marks the first time financial institutions can offer European retail investor clients the opportunity to trade turbo warrants on cryptocurrencies, on-venue, 24 hours a day, five days a week.
Being able to trade overnight is particularly relevant for retail investors looking at this asset class because it allows them to reduce the gap risk presented by the 24-hour nature of cryptocurrencies, while trading on a regulated venue offers greater transparency and investor protection compared to many alternatives.
Using derivatives to access cryptocurrencies also means investors don’t need to maintain a separate crypto wallet, and enjoy greater assurances over the safer custody of their assets.
“We are proud to continue our track record of innovating to provide a better way for Europe’s retail investors, and this launch responds to very strong demand for versatile exposure to cryptocurrencies,” said Nicky Maan, CEO of Spectrum Markets.
“As well as being an easy way to access cryptocurrencies via their broker with a limited outlay, the Turbo24 products provide investors with tools to hedge exposure and better control their risk in what is, after all, a highly volatile asset class. We firmly believe there will continue to be a role for digital assets in retail investor portfolios, and we look forward to introducing further innovations and opportunities in this space,” he adds.
The knock-out function inherent to turbo warrants, through which the instrument is automatically terminated when the underlying asset hits a specific price, enables investors to effectively limit their exposure, while Spectrum’s 24-hour trading reduces gap risk, where investors lose out if asset prices change significantly while other venues are closed.
The ability to take short positions also enables investors to benefit from declining prices, and provides a valuable means of hedging long exposure as part of a wider trading strategy.
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.