Sucden Financial unveils STAR’s Dynamic Spreader

Wednesday, October 28, 2015
Sucden Financial has developed a new advanced trading feature on its STAR trading platform. The Dynamic Spreader now allows users to monitor and trade on two exchanges/markets simultaneously, taking advantage of any arbitrage opportunities.

Traders may trade the sugar premium, for example buying New York (Raw) sugar contracts whilst simultaneously selling London (White) sugar futures at the click of a button. Another example would be buying LME copper and selling COMEX copper futures contracts. Intra-exchange spreads may also be created and traded, such as buying LME aluminium and selling LME copper, taking advantage of any relative value. The new system can save a trader time and potentially obtain better prices, whilst minimising risk.

STAR trading platformThe system works by allowing users to create and trade intra and cross-exchange synthetic spreads, utilising an algorithm that releases orders in clip sizes as determined by the trader to mitigate ‘legging’. The platform is programmed to reduce risk, together with alerts, providing the user strategies and built-in protection against excessive price slippage.

STAR is Sucden Financial’s in-house developed futures and options trading platform, providing access to many of the world's major exchanges. The system is used by a broad range of clients, including brokers, proprietary trading houses and hedge funds, as well as the firm’s internal execution desks.

Michael Overlander, CEO, Sucden Financial said; “This is a great additional tool for our STAR traders and a good example of where in-house development has enabled us to develop specific functionality, coupled with stringent risk controls. We believe this major enhancement will further demonstrate our desire to make STAR the platform of choice.”

Gavin Parker, COO, Sucden Financial said; “Legging risk, where only one side of the trade is filled when trading across multiple exchanges is always a potential issue for traders, especially when dealing with less liquid contracts. This new feature has taken significant development by our in-house team who have created tools to minimise these risks as far as possible. STAR is a user friendly system, providing electronic access to derivative markets at a fraction of the cost of some ISV platforms with similar functionality, together with an excellent set of tools for advanced trading strategies.”

Risk Warning: Trading futures, options or contracts for differences involves the risk of loss.

About Sucden Financial

Sucden Financial is a leading international derivatives and FX broker providing access to a broad range of markets, including exchange and OTC traded products, as well as equities, fixed income, foreign exchange and bullion.

The company was formed in 1973 as the London brokerage arm of Sucden, an independent leader in soft commodities trading.  Sucden Financial has since evolved into one of the largest brokers for traders, fabricators, producers, consumers, investment houses, hedge funds, commodity firms and retail brokers.

Sucden Financial is a ring dealing member of the London Metal Exchange (LME) and has access to major global exchanges, offering clients fast, direct access to worldwide markets.

All senior appointments to Sucden Financial Limited are subject to regulatory approval.

Based in the City of London, Sucden Financial also has offices in Moscow and subsidiaries in Hong Kong (Sucden Financial (HK) Limited) and New York (Sucden Futures Inc.).

Sucden Financial Limited is authorised and regulated by the Financial Conduct Authority (FCA).

Sucden Financial (HK) Limited is licensed by the Securities and Futures Commission (SFC).

Sucden Futures Inc. is registered with the National Futures Association (NFA).
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