Scope Markets Enhances CFD Product Suite with Additional ADR, ETF and Single Stock CFDs

October 31, 2023 - Scope Markets, a globally regulated securities brokerage group, has today unveiled its augmented tradable offerings, a strategic move in line customer demand. 

The expansion encompasses over 100 additional CFDs, distributed across eight key global asset classes. Notably, the inclusion of several American Depositary Receipts (ADRs) is poised to allow extended hours trading for particular European equities.

Pavel Spirin, CEO of Scope Markets, remarked: “As a business, we’re always eager to respond to evolving customer needs, which underlines our ‘can-do’ approach as a business. Partners will frequently ask us to help them find a solution to access exotic markets or asset classes, which drives these product additions, that we, in turn, are happy to make available to our global customer base.”

The adaptability of the CFD model permits brokers to provide market access to assets, even when direct trading of the underlying instruments is impeded due to various constraints like minimum order size, client residency, or exorbitant transaction costs. This update incorporates nearly 50 US equity ADRs and 20 Japanese ETFs, all within a CFD framework. Additionally, 20 ETFs from the Hong Kong exchange have been introduced, offering targeted exposure to several Chinese sectors such as electric vehicles, cloud tech, and biotech.

Understanding ADRs

An American Depositary Receipt (ADR) serves as a tradable certificate, testifying an ownership stake in American Depositary Shares (ADSs). These ADSs signify an interest in the shares of a non-U.S. entity that's been lodged with a U.S. financial institution. ADRs are transacted in USD, maintaining a fixed ratio of underlying shares per ADR. Trading operates within US market timings, enabling price alterations to be reflected even if the originating market isn't operational. The concept of the ADR was pioneered in 1927 by JP Morgan, facilitating U.S. investors to participate in the shares of the UK-based department store, Selfridges. 

Scope Markets is a diversified financial services group providing online trading facilities and institutional brokerage solutions to customers across the globe. Offering access to multiple asset classes and instrument types across both mobile and desktop platforms, Scope Markets is a trusted partner delivering customer-centric solutions from a single venue, regulated in six different jurisdictions and support customers worldwide.