A notable figure in this year’s Bank for International Settlements (BIS) survey of FX turnover highlights the increasingly important role of firms like retail aggregators in the FX market. While in the 2016 survey the “Other” category of the Other Financial Institutions segment of the report (this is largely the retail aggregator/prime-of-prime sector) was responsible […]
Tag: Real Money
The announcement by BNY Mellon this week that it is launching an FX prime brokerage (FXPB) service is interesting for a couple of reasons.
Superficially, it bucks a trend that has developed in recent years of banks scaling back, or even shutting down, their FXPB businesses. However, Profit & Loss already argued in a special report looking at prime services published in Q3 2017, that this trend was beginning to reverse itself.
So perhaps more significant is that it indicates that the barriers to entry in FXPB have been lowered as the cost of technology and infrastructure has both decreased and become more available.