Gil Mandelzis CEO, Traiana, Inc.
Gil Mandelzis CEO, Traiana, Inc.

The case for Foreign Exchange Prime Brokerage

Gil Mandelzis outlines why there is such growing interest in providing Prime Brokerage services and what the key drivers pulling banks into this competitive market are.

First Published: e-Forex Magazine 15 / Features / July, 2004

Total Client Servicing delivered through Trading Relationship Management™Over the past few years there has been a growing interest in Foreign Exchange Prime Brokerage (FXPB) by both banks and institutional clients. This interest has created a stampede by banks to get to market with an FXPB offering. Paradoxically, PB fees (per million) have dramatically decreased over recent years. Yet many major FX players are investing heavily in their offering—both existing FX Prime Brokers as well as new entrants. Others are in the process of evaluating their strategy. Why is there such interest in providing these services? What are the key drivers pulling banks into this competitive market? Where is the ROI?The shift from a fee focus to Client ServicingThe answer is in the fundamental shift in the role that Prime Brokerage is playing in the FX and institutional client-servicing world. Up until a couple of years ago PB was a niche business within foreign exchange - offered to a limited number of clients...continued

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