The London Stock Exchange has unveiled its latest innovation – a new ‘swaps’ platform based on its UnaVista service, on which contracts for difference can be traded through a central, automated exchange, without the need for negotiation between parties.

The new gateway, currently being tested by a number of large hedge funds and institutional investors, bridges the gap between buyer and seller, and allows for automatic normalisation and trade of exchange-traded CFDs.

The new platform is designed to streamline the process of transacting non-standard contracts for difference between different parties, allowing access to a field of international trading firms in a uniform, compliant and standard manner, allowing CFD traders to execute orders seamlessly across borders for the first time, through an intuitive browser interface.

The move marks the latest in a line of innovations from the London Stock Exchange, as advancing technologies open the scope of possibilities for live-time, international trading, and many professional CFD traders are tentatively suggesting the new platform could break down the remaining barriers to non-standardised CFD trading.