Spectrum Markets adds turbo warrants on Bitcoin and Ethereum for brokers

Rick Steves

Spectrum Markets has included turbo warrants on Bitcoin and Ethereum to its trading offering, thus widening it to include cryptocurrencies as an underlying. 

The pan-European trading venue for securitized derivatives has expanded the existing suite of Turbo24s, which allows brokers to offer their clients long or short leveraged exposure to the price of the two most popular cryptocurrencies.

Overnight trading 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. Derivatives trading doesn’t require investors to maintain a separate crypto wallet.

The regulated venue also offers greater transparency and investor protection compared to many alternatives. Brokers can now partner with Spectrum to provide European retail investors with access to turbo warrants on cryptocurrencies, on-venue, 24 hours a day, five days a week.

Brokers can count on Spectrum for 24-hour crypto trading

Nicky Maan, CEO of Spectrum Markets, said: “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.”

“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.”

Turbo warrants feature a knock-out function which automatically terminates the position when the underlying asset hits a specific price, enabling investors to effectively limit their exposure.

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.

It was in November 2021 that Spectrum Markets partnered with international trading solutions specialist LIST to increase connectivity options for Spectrum members. LIST will first focus on developing the connectivity adapter for brokers, followed by the adapter for market makers.

Spectrum is on a quest to ensure it delivers a ‘plug and play’ solution that most effectively meets the local needs of financial institutions around Europe.

Spectrum has recently hit the milestone of one billion securitised derivatives traded on the platform since it launched over two years ago.

New users as well as increased trading activity, especially among younger traders and those seeking to profit from higher levels of market volatility, have fueled growth that surpasses 170% year-over-year by November 2021.

Spectrum Markets allows investors to take advantage of its 24/5 offering. More than one third of all trades take place outside of traditional hours.

The Frankfurt-based MTF operator focuses on listing a smaller selection of the most popular products, thus delivering much more concentrated trading activity across the range.

Average reference trading for products listed on Spectrum is higher by double-digit multiples when compared against wider European industry averages for similar instruments.

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