A New Year and a new brand – what does that mean for your institutional clients?
Primarily this move reinforces the theme of constant evolution that has driven growth at CMC Markets for the last three decades – and shows no sign of relenting, either. The decision to launch CMC Markets Connect comes from our increased focus and investment in building for an institutional audience first. Although this isn’t a new market for us – we have been supporting financial institutions in growing their businesses for almost twenty years – our new brand marks the ‘stepping- up’ at CMC to focus on new product innovations, as well as the highest quality pricing and execution services. That in turn will allow us to work with a wider variety of institutions as well as providing our retail clients with an even more sophisticated experience. With that in mind, we realised that there was a need to ensure the market understood the delineation between our institutional and retail offerings, hence the launch of CMC Markets Connect.
So how will the institutional client experience change?
I already mentioned product innovations, of which there will be quite a few over the next 12-18 months as we continue to work on developing a very-low latency solution. Initially this will focus on better serving the FX world with our moves into Spot FX and additional sub-asset classes. In terms of how the experience is enhanced, as well as becoming a true liquidity maker, part of our new brand positioning is being a ‘complete partner’ to our clients and offering a holistic service that evolves with their businesses requirements. We pride ourselves in already offering the highest levels of service and expertise but like all providers we can always do more.
In other words, a ‘beyond FinTech’ situation?
Yes, I think that’s right. Technology has been at the heart of our business and has also played a crucial role when it comes to innovation in the market as a whole. However, service standards aren’t perhaps always what counterparties need or expect. We’re going to use that as a core part of our proposition, so institutional clients know that they will continue to benefit from consistently high service level agreements and that when they need more bespoke support, our consultative services are available to back them up. Market evolution means that we are dealing with companies of many different shapes and sizes, so you cannot assume that they will all have the necessary levels of technical or infrastructure knowledge on hand. Ultimately we’re also looking to act as a one-stop shop for multi-asset liquidity, trading technology, reporting and consultation.
Consolidation of service providers – do you see that as the future?
Very much so. When developing our new brand and products we started by undertaking industry research which highlighted the demand for a multi-asset offering. Arguably it’s a curve we feel we have been ahead of for some time anyway with the wide range of CFD backed products on offer including thousands of single stocks. However, by adding attributes such as Spot FX, becoming a fully-fledged liquidity provider and delivering a wide range of consultative services too, under the CMC Markets Connect brand we are confident that we can add even more value and further accelerate our B2B growth.
And what happens to the retail offering?
That’s not going anywhere and indeed our planned institutional growth will have a halo effect that helps further refine the retail side of the business. We have always targeted a sophisticated investor audience and they will be able to benefit from our improved price construction and broadened product offering. By shifting our approach and designing for institutions first we are confident this will be a win-win for all of our clients globally.