hi profittaker:
i could well be wrong with my idea instead...
so...philip security gets a customer order thru their CFD platform...and sends a "corresponding" order (not the client's order) to the exchange...
why do this extra step??? extra spray...
unless it is a fact that all CFD platforms are NOT directly hooked to the exchange...and CFD transactions are ALL in-house....
what philip is trying to do, is probably not undertake any position risks by enacting such CFD DMA mechanism....
but why do they do this extra spray? becos they wana make commissions...by offering CFD leverage and yet assuring customers
a) that such DMA means more liquidity
b) spreads are demand/supply based
c) no price delays
but will philip securities give you the assurance that during a meltdown, they will open those counters for trading? will they impose Short selling ban as would exchanges? i duno...