Just over a year on from the initial launch of its marketindex platform in Germany (see Euromoney July 2006), ABN Amro has decided to enter the highly competitive UK retail market. The bank launched marketindex, which is white-labelled from Oanda, in mid-September. The platform provides streaming two-way prices in various currencies, equity indices, commodities and bonds. For legal reasons, these are designated as contracts for difference (CFDs), although in reality there is very little difference from trading the underlying cash products. ABN Amro will act as counterparty to all trades, although all prices are sources directly from Oanda.
Tough challenge
At the platform’s launch in London, Zafar Alam, global head of private investor products at ABN Amro, admitted that the bank faces a tough challenge to win over UK investors, as they are extremely well catered for by companies offering spread betting and by other CFD providers. However, he points out that ABN Amro faced a similar competitive environment when it launched in Germany. He says that the platform has proved popular there and it is now also successfully operating in Austria and Switzerland. According to Alam, clients will be able to trade with minimal amounts placed in their accounts. They will also be able to deal in small amounts – as little as $1 – if they choose to. All interest on open positions will be paid or charged in real time.
