Grey Label Client Case Study

15 Jun 2021, 23:30

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Client Facts:
 

  • Counterparty type: Grey Label for CFD & spreadbet
  • Established: 2007
  • Regulated by: FCA 
  • Key metric: 10,000 instruments on offer

 

Overview
A London-based stockbroker was looking to overhaul its CFD and spread bet provision. Historically, this had been delivered on a grey label basis, but the incumbent provider had a rigid system that offered no flexibility when it came to pricing. Clients were obliged to operate using a one-size-fits-all approach, with the broker unable to offer differentiated rates which in turn reflected the range of service levels it was providing.

Challenges
The options available were comparatively straightforward. The broker could either find another white or grey label provider who had the ability to offer more bespoke services, or an end-to-end solution could be constructed, blending a series of proprietary and off the shelf elements. Whilst the latter route was considered, this would have required significant resource commitment and the question that had to be asked was whether the company’s expertise was as a broker or as a technology provider.

Consultation
Working with CMC Markets Connect allowed the broker to offer up to five different pricing templates to their customers. Whilst there is some limitation here, the ‘set menu’ approach means that these different relationships can still be managed in a hassle-free way.

Results
The broker notes two key areas where the relationship with CMC Markets Connect has yielded a positive outcome. The ability to customise pricing has been instrumental in assisting with customer retention, whilst the streamlined approach taken by CMC means the introducing broker has also been able to focus on what they are good at, namely providing a high level of service to the customer.

The Future
The product offered by CMC Markets Connect was seen by the broker as being superior to anything that could be built using off the shelf solutions. On top of this, the broker acknowledged that CMC was particularly proactive, especially when it came to upgrading technology. This is seen as something of a winning combination, allowing the broker to provide a high-quality trading infrastructure to its clients, supported by its own equally high-quality service.

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