Prime Brokerage. Your gateway to the interbank FX markets

Prime brokerage is proving to be a popular model with institutional FX trading firms so Nicholas Pratt asks what the attraction is and how prime brokers are helping clients to leverage the benefits of their services.

First Published: e-Forex Magazine 56 / FX Brokerage Operations / April, 2014

One of the primary benefits of using a prime broker is the access to liquidity that it grants by virtue of the partnerships it has put in place with leading liquidity providers, says Natalia Hunik, vice president of world sales at Boston Technologies, which has its own licensed prime brokerage service in the UK, Boston Prime.  “Finding the right liquidity is not always an easy task as traditional liquidity providers are challenged by the growing number of small tickets and the increased percentage of algorithmic flow,” says Hunik. “Cutting edge technology certainly contributes significantly to the prime broker’s success in servicing institutions. Quality liquidity, however, is of the utmost importance. Adding new liquidity providers with unique pricing strategies that can satisfy the clients’ trading needs is, or should be, a priority for forward looking FX Primes.” There is also a range of back office services being offered by prime brokers. “A top-notch...continued

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