Over view

FX prime brokerage (FXPB) came to the forefront in the late 1990s but had limited traction. Over the last 3 to 4 years the industry has seen explosive growth in this business fuelled by increased interest in FX as an asset class and the soaring number of new hedge funds. Entering the FXPB space may be a valuable way for banks and second tier institutions (like ourselves) to leverage existing infrastructure and investment.

Primary Clients

- Hedge funds
- Commodity trading advisors (CTAs)
- Traditional asset managers and regional banks.

How it works

Clients trade with an executing broker, who then “gives up” their trade to the FXPB for trade processing.
The FXPB acts as a central counterparty to the client’s transactions; holding any margin/collateral, extending credit lines and becoming the central back office for the client.

Benefits include

-Clients gain access to multi dealer pricing and liquidity.
- They can realise operational efficiencies, STP and reduction in capital expenditures since.
- Collateral requirements  are  aggregated with the FXPB.
- Trade allocation, confirmation and settlement consolidation with FXPB.
- Consolidate and customise reporting through FXPB.
- Primary documentation required only with the FXPB.