Spectrum Markets, the pan-European trading venue for securitised derivatives, has introduced a Stop Order functionality with customised features.
Compared to other venues, Spectrum’s stop orders functionality offers two advantages to investors. The venue will use the presence of Market Maker Quotes in the order book as a trigger for Stop Orders, as opposed to the more commonly used Last Traded Price. This means that orders may be triggered even in times of low trading volumes and in safe conditions in terms of fair price for the execution.
A second feature allows investors the ability to select the side of the order book that triggers their Stop Order. Spectrum Markets is one of the first trading venues to introduce this feature.
Both Stop Buy and Stop Sell (Loss) Orders can be chosen to be triggered by the Offer- or the Bid price. This opens up more choices and possible trading strategies for investors. Both Stop Buy and Stop Sell Orders can be either submitted as a Stop Market Order or a Stop Limit Order. Stop Market Orders will be executed at the best available price, against the available liquidity. This means that they may receive partial fills. Stop Limit Orders will be executed when their limit price is reached.
Eren Eraslan, Head of Product Innovation at Spectrum Markets, said: “Our tailor-made Stop Order options provide connected brokers with an additional method of opening and closing positions for their investors. This functionality once again demonstrates our ability to innovate the trading of securitised derivatives.”
Spectrum Markets is a pan-European marketplace where retail investors can invest in structured products via their brokers. Since its launch, Spectrum’s trading services are available in the following countries: Germany, France, Italy, Spain, Sweden, Norway, the Netherlands, Ireland and Belgium.
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. 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
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