Lori Mirek
Lori Mirek

FX Prime Brokerage - breaking the credit lock.

The development of FXPB represents a revolutionary change to the structure of FX trading and credit relationships and offers many benefits to all participants in the FX market says Lori Mirek.

First Published: e-Forex Magazine 7 / FOCUS / July, 2002

The online FX market is still relatively new, but the benefits that it delivers are substantial, measurable and increasingly being reaped by more and more participants in the FX market. Online FX Prime Brokerage is precisely one of those benefits. This article will examine the significance of online FX Prime Brokerage and discuss the benefits that result from adding FX Prime Brokerage to an eFX service.The development of prime brokerage in foreign exchange is an example of the innovative ways in which banks can leverage their capacity for risk and clearing and boost both customer numbers and bottom line results. Several banks have found that they can realise significant income over and above the fees that they receive from market making, by allowing speculative hedge funds to execute transactions using their credit relationships. Those same banks also found that they can generate further returns by providing those boutique fund managers with account management and reporting services, along with unified...continued

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