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Advanced Market Adds Deutsche Bank FX Prime Brokerage

Advanced Markets is offering foreign exchange prime brokerage services to its institutional clients through Deutsche Bank, in a move that expands its credit capacity and allows existing Deutsche Bank prime brokerage clients to designate the bank as its prime broker when trading via Advanced Markets.

Deutsche Bank’s move runs counter to recent developments in the market, where at least three banks have pulled back from providing prime brokerage services to clients.

Advanced Markets, a Charlotte-based direct market access (DMA) platform provider, already offers FX prime brokerage services to clients through Citi and Morgan Stanley. The latest initiative expands the range of credit options provided by Advanced Markets and Deutsche Bank.

The company, in conjunction with Deutsche Bank National Trust Company, also offers a segregated client funds service for qualifying clients. Under this structure all client funds are held at the custodial bank under a tripartite agreement. The account is debited or credited daily within 24 hours of the close of the trading day, meaning customer equity is fully segregated at all times.

“FX DMA is an optimal model for hedge funds, proprietary traders and other institutions to trade FX. Providing Deutsche Bank’s FX prime brokerage service reflects our commitment to enhancing institutional FX market access by continuously refining our market model, trading technologies and credit structures,” says Anthony Brocco, executive chairman of Advanced Markets.

In addition to supporting prime brokerage credit structures for qualifying institutional participants, Advanced Markets provides credit through a “prime-of-prime” model to funds and brokers that are not eligible or interested in direct bank prime brokerage services.

The company, which withdrew from its US retail FX business two years ago so it could focus on its primary business of servicing institutional participants, offers a DMA platform that allows users to trade on prices streamed by more than 10 of the largest FX banks in a transparent, anonymous market structure.

The combination of its DMA model and low-latency trading technology has driven participation from fund managers and other institutions that use FX prime brokerage services to access the FX market, the company claims. Advanced Markets’ prime brokerage service complements its margin and secure funds account structures, it adds.

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