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30 March 2020 – CMC Markets has today announced the addition of 17 new share baskets on to its trading platform. Covering a wide range of topical industries, including gaming, banking and renewable energy, CMC clients now have the ability to gain exposure to trending sectors with a single trade.
The baskets each contain up to 50 stocks whose operations relate to a specific theme, with each constituent being given a tiered weighting. In order to efficiently maintain the configurations and ensure all corporate actions are handled appropriately, CMC are working with business information provider IHS Markit, a leading source of independent valuation services for exchange traded products and custom baskets.
CMC says in its press release that as these products are developed internally, further baskets can be added quickly in response to customer demand.
Simon Campbell, Group Head of Trading at CMC Markets, commented: “As a business we are committed to driving client success and continue to build products with this mission in mind. We see our clients’ interests pique when certain industries come into focus and we wanted to be able to offer an alternative way for our clients to trade on the opportunity.”
“With each of these high-profile industries being well covered in the mainstream media, there’s no shortage of information to help form trading decisions. So, whether a sector’s valuation is rising or falling, these baskets allow our clients to easily ‘trade the trend’ by taking a long or a short position accordingly.”
Christopher Hare, Global Head of Product Development for DeltaOne at IHS Markit, added: “We are excited to deliver our expertise in portfolio and index valuation by collaborating with well-established providers like CMC Markets. Working together, we will advance the availability of innovative investments which bring greater flexibility to global financial markets.”
The new baskets added are:
- Cannabis
- 5G
- Big Tech
- Cyber Security
- Mobile Payments
- Driverless Cars
- Gaming
- US Banks
- Renewable Energy
- China Tech
- Streaming Media
- Social Media
- Software as a Service
- Automation & Robotics
- UK Banks
- European Banks
- European Automobiles
Constituents in each basket are given a tiered weighting. This helps avoid large price movements for conglomerates operating across multiple sectors from having a disproportionate influence on a basket’s valuation.
For more information on basket constituents and the index weighting methodology please visit: https://www.cmcmarkets.com/en-gb/share-baskets-trading
