Automating FX Give-Ups in an Electronic Age

First Published: e-Forex Magazine 18 / Spotlight / April, 2005

Prime Brokerage is now an established, mature product in the global foreign exchange market. Two or three years ago FXPB was a emerging business, with ad-hoc services being offered to a handful of clients. Now the leading Prime Brokerage firms are offering their services to dozens of firms, with the largest having close to one hundred clients and processing several thousands of FX transactions a day.Prime Brokerage – a mature businessThe essential offerings and benefits of Foreign Exchange Prime Brokerage are clear. At its core it allows a fund to trade with a much wider variety of counterparties, without the need to set up lines and collateral with each trading partner. This facilitates best execution across a range of currencies and products. Furthermore a Prime Broker will take care of the clearing, settlement and bookkeeping, allowing the fund to focus its energies, and capital, on trading strategies. Finally the Prime Brokerage relationship offers a reduction in settlement risk through the netting...continued

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