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CommSec launches over the counter CFDs

6 November 2006

CommSec announced the launched an exciting new trading product: over-the-counter contracts for difference (CFDs) which will be made available to its sophisticated clients from 6 November 2006.

"Our clients are demanding CFD trading opportunities; particularly among experienced and sophisticated investors looking for leverage, flexibility and convenience," said Matt Comyn, General Manager - CommSec.

"CFDs are becoming increasingly popular, and in response we have developed a competitive CFD trading product for our clients. Using the direct market access model, our clients have transparency, as trading takes place based on the actual buy / sell spread on the underlying security listed on the Australian Stock Exchange."

According to Mr Comyn, CommSec’s over-the-counter CFDs are a precursor to Exchange Traded CFDs, scheduled to go live in 2007.

"CommSec is currently working with the Australian Stock Exchange to pioneer the launch of Exchange Traded CFDs."

"Exchange traded CFDs retain the leverage and flexibility that attract investors to over-the-counter CFDs, but provide transparency, enhanced liquidity, risk management, regulatory and supervisory characteristics associated with normal exchange traded products," said Mr Comyn.

"In the meantime, CommSec is pleased to be able to provide our sophisticated clients with direct market access CFD trading opportunities," said Mr Comyn.

- ENDS -

 

For further information please contact:

Steve Batten
Commonwealth Bank
Phone: (02) 9378 2504
Mob: 0411 080 268
Email: steve.batten@cba.com.au

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