ASX to offer Exchange Traded CDs

dcraig1 · Jul 8, 2007

As the title says, the Australian Stock Exchange is to offer (the first ?) exchange traded CFDs:

http://www.asx.com.au/

Which raises the question - if you can trade CFDs as an exchange listed product why would you want to trade through 'dodgy brothers' CFD dealers ?

InterativeBrokers have added ASX to their list of available markets. No mention yet on whether CfDs will be available.

chorus104 · Jul 17, 2007

A bit confused on this, I currently use BrokerOne for CFDs, how is the Asx offerings going to make any difference? will it be cheaper ?

Thanks

dcraig1 · Jul 17, 2007

chorus104 said:
A bit confused on this, I currently use BrokerOne for CFDs, how is the Asx offerings going to make any difference? will it be cheaper ?

Thanks

It means a transparent market like other exchange traded derivatives such as futures. It should mean that your broker is not taking the other side of your trade and the sole financial consideration for the broker is commission.

chorus104 · Jul 17, 2007

I see, well hopefully that will help Aus Brokers to be more competitive on brokerage, with IB coming in as well, should see prices go US style.

Paulds11 · Jul 25, 2007

Man.. this is exciting.. finaly hope that I can get my hands on that high frequency opening breakout profile of the AXJO index.. there isnt an opening breakout like that with such predictable tendancies in any market in the world I have observed... it remains my ultimate goal.. and now I (we) are one step closer to to this opportunity.. C'mon IB lets have it!..

Any updates on broker acess to this please post!!

regards

Paul (Now building a workstation for my trading... hmm... Dual Xeons or Opterons... what a gorgeous decision to ponder)

123cf · Sep 27, 2007

dcraig1 said:
Which raises the question - if you can trade CFDs as an exchange listed product why would you want to trade through 'dodgy brothers' CFD dealers ?

The reason you would stay with a normal 'market maker' model is becaus of the added liquidity they provide.

Exchange traded CFDs have liquidity restrictions as its a buyer/seller market, if nobody wants to sell, you cant buy and vice versa.

Plus the variety of CFDs avaliable on the exchange traded model is fewer than the market maker model.
--

www.123cfd.com

stisoon · Feb 8, 2008

the introduction of asx cfds is going to help raise awareness of cfds and might actually help increase the number of people actually signing up with OTC cfd providers once they find out it is actually more cumbersome and less flexibility in trading asx cfds

there is a restricted list brokers that offers trading in asx cfds.

whipsaw · Feb 8, 2008

It's a kind of evolution,
where -from my point of view - the synthetic markets will stand at the very end of the food chain.
It's undoubtedly - Exchange traded CFDs and as a result official settled trades will be the most transparent type of this financial transaction.

Unfortunately this system is too/ or more expensive because of the number of participants, and it is less flexible. I see only a few advantages in contrast to DMA,
like IG Markets and others it offers.

And for me as Trader which prefers indices instead of xyz ExT'CFDs offers not any advantages.

Just my 2cent

Mortgage broker · Sep 24, 2008

Mortgage broker Brisbane

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Dr_Jones · Sep 25, 2008

Yeah and they are trying to stop ASX having the monopoly on the markets.
So the OTC thieves can move in.
Which I can make absolutely no sense of.
Why they would want a regulated central exchange to not have a monopoly.
That just opens up the doors for the dodgy lying thieves like CMC.
I would rather there be no one there to buy off, and not trade, than buying and having thieves instantly smash my own money against me the other way.
http://www.investordaily.com.au/cps/rde/xchg/id/style/2547.htm?rdeCOQ=SID-3F579BCE-BEAF47D2

ASX to offer Exchange Traded CDs

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