The evo­lu­tion of share trad­ing by Andy Rogers

The world of on­line stockbroking is ever chang­ing. In­vestors are more fi­nan­cially lit­er­ate than ever be­fore and have ac­cess to a plethora of in­for­ma­tion via the in­ter­net. In to­day’s world, tech­nol­ogy has aided our search for knowl­edge and al­lowed in­vestor

Business First - - CONTENTS - Andy Rogers is di­rec­tor of stockbroking at CMC Mar­kets. An­drew Rogers is Head of CMC Mar­kets Stockbroking

F rom the in­cep­tion of trad­ing on the floor cen­tralised at the stock ex­change, tak­ing phone calls from sell­ers and buy­ers to to­day’s re­tail traders mak­ing trades in the palm of their hand di­rect to mar­kets around world, stockbroking has un­der­gone one of the most sig­nif­i­cant shifts of any in­dus­try of late.

Back in the day the process was very me­thod­i­cal, in­vestors en­gaged the bro­kers and the bro­kers would bat­tle it out with the Ex­changes. Bro­kers were the key as they con­trolled ac­cess to the mar­kets.

How­ever, in­creas­ing com­pe­ti­tion and im­prove­ments in tech­nol­ogy caused a sig­nif­i­cant change in the mar­ket struc­ture. The abil­ity to trade elec­tron­i­cally dra­mat­i­cally in­creased trad­ing vol­umes and liq­uid­ity, and al­lowed for greater ac­cess to var­i­ous fi­nan­cial mar­kets. As the in­dus­try be­gan to change, so did the in­vestor.

In­vestors have evolved with the mar­ket, be­com­ing so­phis­ti­cated traders who ac­cess a range of in­for­ma­tion from var­i­ous trusted sources, the rise of the self-man­aged su­per funds in Aus­tralia is cer­tainly a good ex­am­ple of this.

The Aus­tralian Share Own­er­ship Study re­leased in 2015 by the ASX shows that Aus­tralia con­tin­ues to have one of the high­est lev­els of share own­er­ship in the world (36%). More in­vestors here traded on­line (58%) than through a bro­ker or ad­vi­sor (31%), re­flect­ing a grow­ing de­sire of in­vestors for self-di­rec­tion and con­trol over in­vest­ments.

Recog­nis­ing that CMC’s client base is al­ways evolv­ing has meant we put in­no­va­tion at the cen­tre of ev­ery­thing. The need for busi­nesses to con­stantly eval­u­ate and adapt their of­fer­ing is para­mount in a com­pet­i­tive mar­ket with a well-in­formed cus­tomer base.

The next step in evo­lu­tion of trad­ing is ac­cess to in­sti­tu­tional level in­for­ma­tion via mo­bile, tablets and the home PC. In 2001 di­rect re­tail in­vest­ing be­came more main­stream with an in­crease in ac­ces­si­bil­ity on­line, over the next decade the GFC rocked the mar­ket caus­ing dis­il­lu­sion­ment with ex­perts and rais­ing aware­ness of the in­ter­con­nect­ed­ness of world mar­kets. Lead­ing to re­tail in­vestors be­com­ing more con­sid­ered and re­search reliant than ever be­fore.

The ASX’s 2015 Share Own­er­ship Study found 55% of di­rect in­vestors be­lieve they can only suc­ceed if in­vested for the long-term and 53% have a fairly dis­ci­plined ap­proach to the share­mar­ket. It’s im­pe­tra­tive for in­vestors arm them­selves with nec­es­sary means to make the best-in­formed de­ci­sions if they are to suc­ceed. As un­cer­tainty plagues the share mar­ket our fo­cus is al­ways on help­ing our clients to suc­ceed through in­no­va­tion and ed­u­ca­tion. Fol­low­ing client feed­back, we spent 18 months de­sign­ing and de­vel­op­ing the fully cus­tomis­able Pro plat­form to meet the evolv­ing needs of Aus­tralia’s fre­quent share traders, lead­ing us to cre­ate an Aus­tralian in­dus­try first.

To date, the re­tail on­line broking mar­ket in Aus­tralia has not of­fered much choice to fre­quent share traders in terms of so­phis­ti­cated, pro­fes­sional trad­ing plat­forms. Over­seas, par­tic­u­larly in the US and Europe, bro­kers are of­fer­ing a wide ar­ray of plat­forms with unique fea­tures.

As clients de­mand more in­for­ma­tion and bet­ter qual­ity charts all at their fin­ger tips and ac­ces­si­ble via any web browser to do this.

To meet our de­mand, we needed to cre­ate a plat­form on the most cur­rent mark-up lan­guage, HTML5.

HTML5 is the fu­ture for on­line share trad­ing plat­forms, and Pro plat­form is the first in Aus­tralia to en­sure cross-browser sup­port that doesn’t re­quire soft­ware plug-ins, down­loads or soft­ware up­dates. Re­defin­ing the on­line share trad­ing mar­ket in Aus­tralia, this prod­uct will be­come the new stan­dard that switch­ers seek, across tech­nol­ogy, ser­vice and value.

The new HTML5 Pro plat­form gives re­tail traders ac­cess to an ad­vanced chart­ing pack­age with the abil­ity to open up to 10 charts at a time on one screen, while of­fer­ing a range of ad­di­tional fun­da­men­tal tools for our Ac­tive In­vestors and Fre­quent Traders, so they can make bet­ter in­vest­ment de­ci­sions.

Pro plat­form is a fully cus­tomis­able plat­form with mul­ti­ple lay­outs. The charts work seam­lessly to­gether via our mod­ule link­ing fea­ture and of­fers a host of new fea­ture in­clud­ing over 95 tech­ni­cal indi­ca­tors, 35 draw­ing tools, 12 dif­fer­ent chart types and pat­tern recog­ni­tion.

Through the tire­less work of our global IT and prod­uct de­vel­op­ment teams, un­der­pin­ning the Pro plat­form there is seam­less con­nec­tion to part­ner ser­vices and tools so our clients can trade ef­fec­tively on one plat­form. The cream of these in­clude:

• Morn­ingstar – Sum­mary of fun­da­men­tal data for in­vestors

• Reuters News – Live data feed

• The Screener – Star-rated val­u­a­tion re­ports

• Lever­aged mar­gin lend­ing fa­cil­ity – fully in­te­grates with our mar­gin lender via an API. From the trad­ing floor to ac­cess in the palm of your hand, share trad­ing will con­tinue to un­dergo change as the in­dus­try in­no­vates to meet cus­tomers’ needs.

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