Omnibus PartnersThe Omnibus partnership model is designed for brokers who are able to provide CFDs or other margined products and wish to extend their offering with our products and software. Under the Omnibus relationship, the broker does not actually introduce clients directly to IG Markets. Instead, he keeps them 'on his books' and opens sub-accounts with IG Markets which represent the interests of the clients. This way, the broker keeps his clients anonymous. Trading relationships are between IG Markets and the broker, and the broker and his clients; we only apply margin calls to the broker. Clients are provided with our trading interfaces, which can, if necessary, be branded in the colours of the broker. Using L2 Dealer and AccountView to manage accounts, the broker can also offer a telephone service to make himself easily accessible to clients. It is also possible to take the trading information in spreadsheet form and integrate it with existing systems in order to disseminate statements (although IG Markets is happy to send these statements out for the broker). Level of commitmentBeing an Omnibus partner places heavy demands on the broker. A significant regulatory requirement is likely to be needed to allow him to enter into CFD relationships with his clients. In addition, he needs to have the requisite level of staffing and IT investment to make margin calls, collect deposits and explain CFDs. Since IG Markets will be margining the broker for his end-client obligations, the broker will need to have sufficient capital to operate the business with confidence. If these conditions are met, the Omnibus relationship offers huge potential for our partners to enhance their offering over an extended client base via IG Markets. Any questions? |
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