IG launches US futures and options trading for UK clients

IG Group has launched US-listed futures and options trading for UK clients on the group's US trading platform, providing access to over 7,000 underlying assets.

The FTSE 250-listed trading platform provider on Wednesday said this summer’s launch provided its UK self-directed retail traders with access to “one of the fastest growing markets globally” while providing instant funding and currency conversion.

IG now offers UK customers a variety of financial instruments across over-the-counter (OTC) and listed markets, and across individual savings accounts (ISAs), share dealing, contracts for difference, spread betting, options and futures.

“The UK is ripe with experienced traders running diversified, active portfolios and looking for new market opportunities, but to date, access to options and futures has been limited in comparison to the US,” said JJ Kinahan, chief executive of IG North America and president of tastytrade.

“This launch is a natural extension of our offering, and these products will be a complementary addition for many experienced traders’ portfolios. Where traders have the financial appetite and conviction to pursue these markets, we are committed to ensuring they have both the access and the informative content required to make the most of the opportunity.”

The trading platform provider’s expansion into US listed derivatives products for UK clients marks a “milestone” for the business,” according to tasytrade chief executive Tom Sosnoff.

“We’re excited to bring capital efficient trading to those UK traders seeking new opportunities, and to welcome more traders globally into the tastytrade community,” said Sosnoff.

“IG partnered with tastytrade to enhance and expand the trading ecosystem for self-directed retail traders and today’s announcement is evidence of this ambition coming to fruition.”

IG acquired tastytrade in 2021 for $1 billion (£780 million), comprising $300mn in cash and $700mn in shares. IG on Wednesday said this was to diversify its product offering for clients and strengthen its global footprint.

Exchange-traded futures and options volume rose last year 64% on the previous year to 137.3 billion contracts, according to FIA statistics released in January.

Euronext reported this week a 15% jump in average derivatives trading volume for May, becoming the latest exchange to benefit from increased hedging demand. Deutsche Boerse-owned Eurex reported a 13% rise in May volume on average, driven by a 41% increase across its rates franchise.

Intercontinental Exchange (ICE) said last week volume was up a third in May, as commodity and rates activity drove a year-on-year boost for the Atlanta-headquartered exchange. CME Group reported a 4% increase in volume for the period, setting a second consecutive calendar month record as commodities trading continued to drive growth.

The OCC, which clears the entire US options market, earlier this week said it handled 977.4 million contracts in May, 3% higher than the same month last year.

In Asia-Pacific last week, the Singapore Exchange (SGX), the Australian Securities Exchange (ASX) and Hong Kong Exchanges and Clearing (HKEX) all reported double digit year-on-year growth in May, signalling a growth in Asia Pacific activity.