Spotex has released Periscope, a new multilevel credit and margin management module that enables prime brokers and prime-of-prime brokers (PoPs) to extend credit and/or margin to multiple levels of downstream, sub brokers. The solution is a specially built risk engine within Spotex’s white-label broker technology system and institutional ECN. It aggregates and monitors both credit […]
Tag: prime of prime
prime of prime
Stater Global Markets (SGM), the London-based prime-of-prime brokerage, has joined oneZero’s EcoSystem network.This means that SGM will be able to extend the distribution of its FX and CFD liquidity to oneZero’s network. The firm has co-located with oneZero in LD4, with cross connections now in place to provide liquidity to oneZero’s institutional clients.Ramy Soliman, CEO of SGM, comments: “Being part of oneZero’s EcoSystem and offering our multi-asset liquidity to their bank, broker and hedge fund client base is a key part of our global growth strategy. In particular, the strength of oneZero in key regions such as Australia and Cyprus fits well with our growth objectives. oneZero’s market reach and robust infrastructure combined with our customisable, high quality liquidity make this an ideal partnership.”
Ashraf Agha has been appointed by Stater Global Markets as a strategic advisor, focusing specifically on operations and compliance.
Agha has almost 30 years’ experience in the financial sector, with roles including head of treasury at Saxo Bank, COO for the FX business at Marex Spectron, and co-founder and executive director of CFH Clearing, where he was accountable for all operations. He is also currently a board member of the regtech firm, muinmos.
Ramy Soliman, CEO at Stater, says: “Appointing Ashraf as a strategic advisor underpins our strategy of leveraging significant institutional experience to fast-track our growth.
On a panel discussion entitled “The Twists and Turns of FXPB”, speakers at Profit & Loss Forex Network Chicago discussed the possibility for technology to radically re-shape the prime services ecosystem.
Technology’s impact on prime services was the jumping off point for the last panel at Profit & Loss Forex Network Chicago. Peter Plester, head of prime brokerage at Saxo Bank A/S highlighted the impact that technology had already in terms of risk management in this segment pointing out that the traditional plumbing for starting up a prime broker was to connect to NEX Traiana and the various ECNs and have STP for tickets, but that the central risk system internal to the PB was fairly manual.
This week’s podcast was delayed because Galen Stops had difficulty connecting from Peru…that or the fact that our podcasters were intimidated by the quality of their guests the previous week and knew they couldn’t match the standard!
They overcome the fear factor, however and go on to discuss the local market in Peru as well as the broader issue of NDF market development, during which Colin Lambert thinks he sees positive signs coming out of Asia regarding electronification of these markets.
Numerous firms have spotted an opportunity to capitalise on the current credit constraints in the FX market by offering a “prime-of-prime” solution. But what are the different models being operated by these firms and what should market participants be looking at in order to spot the real deal? Galen Stops reports.
It’s no secret that over the past couple of years, some of the biggest FX prime brokers (FXPBs) have been off-boarding
existing clients, while simultaneously raising the bar in terms of the capital requirements for new clients.
But while the willingness of these banks to extend credit has reduced, the need for market participants to access it in order
to trade the FX market has not, as noted in the introduction to this special report.
Following the launch of Sucden Financial’s new OTC FX options service, Galen Stops talks to Noel Singh, head of e-FX business development at the brokerage, about how it’s planning to diversify its FX offering.
Despite having an FX franchise that is over 30 years old, an e-FX offering that has been around for more than eight years and a balance sheet of over $100 million, Sucden Financial is not exactly a household name in the wholesale FX market.
But the firm is now working to change that as it seeks to diversify its FX business in response to changing market conditions.
As access to credit has becoming increasingly constrained in the FX market, Noel Singh head of e-FX business development at Sucden Financial, explains that this is only factor at play in the evolving prime services space.
Questioned on the new credit reality in FX markets, Singh responded: “I think credit is only one aspect of the story and I think that post-SNB, when the top tier prime brokers lost money because their clients couldn’t make good the losses, that started it, but I think it’s now the concept of how much is the wallet worth to the prime broker.”
Stater Global Markets, a prime-of-prime brokerage launched in October 2016, has announced its core technology partners as well as the introduction of CFDs in indices and commodities.
Currenex, Integral and Flextrade have been selected as front-end platforms. Gold-i has been chosen as the bridge provider for Stater’s MT4 White Label solution.
FXecosystem, who recently set up a point of presence in HK1 in Hong Kong and SG1 in Singapore, will provide connectivity. Stater Global Markets will use regulatory reporting services from NEX Abide.
Brandon Mulvihill, managing director, head of FXCM Pro, explains that there is still not enough clarity about the different prime-of-prime services being offered in the FX market, and warns that it is a mistake to believe that these firms are currently ready to fill the gap left by the tier one prime brokers.
Profit & Loss: Since “SNB Day” there have been a lot of firms touting prime-of-prime (PoP) services to the FX market. Many of them actually provide very different services. Two years on from SNB, do you feel like these differences are better understood by market participants?