MahiMarkets Expands CFD Pricing for Brokers

MahiMarkets has released a new product enhancement enabling brokers full autonomy over crafting their CFD pricing.

Until now, the firm says brokers have often relied on just one liquidity provider for pricing to each instrument, creating a single point of failure, and potential for poor pricing in illiquid hours.

With specialist CFD pricing techniques, MahiMarkets’ clients are now able to create a significant, measurable increase in B-book PnL, the firm claims, adding users can benefit from features such as liquidity reduction and sophisticated skew drivers to maximise yield, whilst delivering tight spreads to customers with zero slippage. “It is even possible to create spreads that are tighter than those available from the LP,” the firm states.

Mahi says bespoke CFD pricing and risk management techniques can reduce overall company risk and NOP held at LPs to make collateralisation cheaper. It can also make pricing more resilient, help attract good client flow and defend against bad client flow, the firm says, as well as protect against swarm and machine gun traders.

“Despite seeing huge growth in this asset class from clients and prospects, it’s all too common for brokers to still be offering a single LP solution,” says Andrew Morgan, chief product officer at MahiMarkets. “This can often be detrimental to their business if any outages or single LP price issues were to occur. Our predictive pricing enables our clients to produce tailored pricing models for different types of liquidity, spread control, market volatility response and arbitrage protection, instead of delegating all of that to a single external LP.”