Hi Johnnn & Ross Spur
There are several DMA providers in the financial trading space and they all enter the market on behalf of the client, via a General Clearing Member (GCM) or Prime Broker (PB); as opposed to the client themselves entering the market.
ProSpreads, as a DMA provider, works in the same way :
Our multi-asset class DMA platform connects directly to the world's futures and equity exchanges, as well as providing FX liquidity from some of the major banks, via Currenex. Via the DMA platform clients can trade the major indices, single stocks, currencies( futures), Spot FX, commodities, metals, bonds and interest rates… all as a spread bet. We have recently added equities to our product offering and currently offer the FTSE 100 & FTSE 250 along with Eurostoxx 50 however, with US stocks coming online shortly.
The equity connection utilises a smart order router, which scans the primary exchange and some of the MTFs, ensuring you get the best price available, while continuing to deliver exceptional low latency execution. When a client selects a trade, ProSpreads enters the underlying market, transacts a corresponding hedge and fills the client as a spreadbet. Due to the advanced DMA technology used, all this happens in a fraction of second. If ProSpreads chose not to hedge your spread bet, for example in a highly liquid contract, clients will still experience the same transparency, speed of execution and trading functionality that is offered by the exchange or liquidity provider with a DMA connection i.e. you can join the bid/offer or even place your order in the middle of the underlying market spread, and as a result clients never experience re-quotes.
As a DMA provider, ProSpreads’ primary revenue is derived from the difference between the spread bet price and the hedging price and therefore wants its clients to trade actively and profitably so they continue to trade ongoing.
If you are either/both in the vicinity of Gibraltar at any time it would be great to meet you and show you the operation and specifically the technology. Alternatively, I am in London from tomorrow for the remainder of the week, so would be more than happy meeting up in the City.
Regards, Simon