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.”
Most popular US and European stocks covered by program
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.
“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), banking/finance (11 stocks) and commerce/e-commerce (8 stocks).
Stocks available via turbo certificates include well-known tech favourites like Alphabet, Amazon, and Tesla, alongside longstanding corporations like LVMH Group, The Coca-Cola-Company, Astra Zeneca 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.
Hedge positions on equities
Turbo certificates on stocks enable equity investors to hedge their positions. Due to the underlying leverage of turbo certificates, they also allow 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.