Stephen Dispenza Executive Vice President, Chief Operating Officer, Refco Capital Markets, Ltd.
Stephen Dispenza Executive Vice President, Chief Operating Officer, Refco Capital Markets, Ltd.

The e-Forex Surgery: Online FX Prime Brokerage

Stephen Dispenza answers questions about FX Prime Brokerage.

First Published: e-Forex Magazine 17 / The e-Forex Surgery / January, 2005

What advantages are there in choosing an FX Prime Brokerage service provider that focuses on supporting client-trading activities rather than taking directional positions on its own account?The issue of FX Prime Brokerage ("PB"), is a multi-faceted proposition. At first glance the idea of choosing a PB that is trading neutral, or not taking trading positions for its own account would seem an obvious advantage. However, the true value of a PB usually rests in their ability to process business in as straight through manner as possible. Often, the systems built for this level of sophistication reside with larger, position taking institutions. Clearly there are exceptions to this generalized rule. Refco for example is a trading neutral group that has spent enormous resources on its prime brokerage systems, for the sake of that business alone. The point here is that the ability to process, should be the key differentiating factor as opposed to the trading neutrality (or otherwise) of the institution in question.We...continued

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