DriveWealth launches options trading against stock and ETFs through its API
“”We will collaborate with you throughout the full lifecycle of enabling options trading for your customers, from product design, operations, to compliance. We are committed to helping you succeed.”
DriveWealth, LLC has launched options trading in its embedded finance platform used by hundreds of partners around the world.
By enabling access to trade options against stock and ETF securities through its API, the global fintech and pioneer in fractional investing is addressing the growing demand for options products at a time of market uncertainty and volatility.
Options trading is the practice of buying or selling options contracts – the agreements that give the options holder the choice to buy or sell a collection of underlying securities at a set price by a specific date.
“Options trading is one of the more complex products our partners can offer”
Bob Cortright, CEO and Founder of DriveWealth, said: “Options trading is one of the more complex investing products our partners can offer to their customers. Our team of experts from the intersection of financial services and technology streamlines this process and makes it easy for our partners to launch options trading.
“We will collaborate with you throughout the full lifecycle of enabling options trading for your customers, from product design, operations, to compliance. We are committed to helping you succeed.”
DriveWealth has built many of the components needed to offer options trading, such as market data, order execution, clearing and settlement, commissions, exercise and assignment, tax reporting, and more.
The company explained its newly launched product supports options trading strategies, simplifies risk management, and ensures proper regulatory reporting. DriveWealth’s options trading product is committed to these three key areas:
Options Trading Strategies. DriveWealth supports the most popular options trading strategies with the ability to diversify, speculate, hedge, and use leverage through buying calls and put options contracts.
Simplified Risk Management. DriveWealth helps ensure customers – and partner firms – don’t end up in a challenging situation. With a built-in Options Approval Matrix, Pre-Trade Checks and automated Expiration Day Liquidation process, DriveWealth has its partners covered.
Regulatory Reporting. DriveWealth manages a range of US regulatory reporting for partners, so they can focus on user adoption and growth.
DriveWealth operates as an investment rail and pioneer of fractional equities trading empowering more than 100 partners around the world to engage their customers by placing the markets in the palm of their hands, with a focus on fractional, transactional, and mobile aspects of trading.
Devexperts tapped Devexperts for fractional shares on DXtrade
DriveWealth has most recently partnered with FX/CFD trading technology specialist Devexperts, which will leverage the former as an executing broker for US stock trades and as an affordable gateway to fractional shares for DXtrade’s broker clients.
This partnership expands the capabilities of Devexperts’ DXtrade platform by supporting fractional trading, allowing users to trade and hold positions of less than one full share.
Devexperts offers DXtrade as a SaaS (Software-as-a-Service) product, designed for brokers offering all types of asset classes and satisfying requirements of all major regulators. The global financial software provider has expanded the platform features to provide both broker clients and traders with a revamped web UX/UI, new functionality for subscription management, ex-dividends, and cash movements, among many others.
DriveWealth powered by new ultra-low latency OMS
In mid-2022, the renowned fintech deployed a new ultra-low latency proprietary trading system delivered by Adaptive Financial Consulting. The fintech giant ordered the new trading system from Adaptive in order to address the increased demand in its retail brokerage business and respond to requests from a growing number of fintechs who are looking to add U.S. equity markets trading capabilities.
Built using Adaptive’s Aeron Solution Accelerators in close coordination with DriveWealth’s core trading team, the new order management system (OMS) handles significant order volumes and will be inittially supporting all internalized orders for U.S. equities fractional trading, with other asset classes to follow.
The Adaptive-DriveWealth partnership has resulted in a well-functioning and ultra-low latency OMS built on top of the open source Aeron Transport and Aeron Cluster solutions.
In late 2022, DriveWealth was included in Deloitte Technology Fast 500, which recognizes the fastest-growing and most innovative technology companies in North America.