Frances Maquire
Frances Maquire

From client services to automation - taking FX prime brokerage to the next level

Five years ago, the FX prime brokerage business was transformed by the automation of give-ups, so that the need to re-key these trades was eliminated, and straight through processing rates dramatically escalated. Since then, FX prime brokerage service offerings have become increasingly sophisticated. Frances Maguire speaks to some major players, about how they are looking to rethink the entire process and move to the next level of service, despite the testing times of the last year.

Paul Houston at Royal Bank of Scotland says that the recent turbulence in the global financial markets has brought credit and liquidity considerations to the forefront in the prime brokerage selection process. He says: “Funds want a FX prime broker that can consistently provide sufficient give-up lines and access to liquidity in the FX market. Those providers who are taking their platform to the next level are those who incorporate traditional clearing and post-trade services with execution solutions and DMA.” RBS has built a prime brokerage platform, called Smartprime, that offers clients access to liquidity from multiple sources, a number of execution tools and online roll execution, alongside the traditional post-trade services associated with FX prime brokerage, such reporting, trade capture, allocations. Houghton believes that the impact of algorithmic trading is already being felt and there is an increased demand for quantitative FX trading strategies from the buy-side. He says:...continued

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