Choosing a PoP to partner with

Heather McLean explores why the Prime of Prime Brokerage (PoP) model continues to gain traction and how brokers can go about harnessing the powerful technology services and customised liquidity solutions provided by PoPs.

The FX PoP brokerage model continues to grow in popularity, says Mitch Eaglstein, Managing Director at Boston Prime. He believes this is because FX PoPs are able to provide a very tailored level of service to clients for whom FX is a primary asset class.  “Traditional prime brokerages typically offer FX services as an add-on for their large customers who need FX as a means of facilitating trades in foreign equities or fixed income products or other transactions with a foreign exchange component,” Eaglstein notes. “For these customers, as FX may not be the main point of focus, they are less likely to negotiate or even pay attention to the business terms by which they do their FX trading, as it is essentially a bundled service.“ “With the proliferation of prime brokerage customers for whom FX is a primary asset class, there is growing demand for a highly tailored level of service that meets the unique needs of their business, and FX PoPs are able to both understand and cater...continued

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