What are the advantages of working with Prime Brokers?
Traditionally, institutional firms sought FX Prime Broker relationships for market access to a diverse pool of Liquidity Providers as well as to take advantage of operational efficiencies in areas such as cross-netting of open positions and flexible collateral management.
With a strong focus on technology, leading FX PBs such as CFH Clearing can provide clients with a complete overview of their real-time positions and P&L as well as robust risk management tools.
In addition, with new requirements set by Dodd-Frank and EMIR Regulation, financial institutions are seeing the benefits that a Prime Broker can bring in terms of reporting tools to meet legal compliance obligations. CFH Clearing offers reporting free to brokers who use our technology.
There seems to be a lot of change in the PB market, with a number of new players emerging. How does this impact CFH Clearing?
CFH Markets started six years ago and changed its name to CFH Clearing in May 2013 to emphasize the change in customers’ requirements for a ‘clearer of tickets’ rather than a broker – and our business has since gone from strength to strength.
Our name change to emphasise our Prime of Prime position was perfectly timed, placing us ahead of the curve as there are now a number of new Prime Brokers entering the market. Like all new players, they will inevitably face teething problems in the early days and I am confident that we are already many steps ahead.
CFH Clearing has a streamlined turnkey solution and I am sure it will take new players a while to catch up to the level that we are currently at. In the meantime, we will continue to evolve and invest in the organisation in order to remain ahead of the competition.
How important is it that you own your own technology?
It is critical to our success and the success of our clients. It means that we have complete control.
We continually invest in proprietary technology in order to remain a market leader. For example, our liquidity aggregation technology leads the way in terms of functionality and latency and we are continually looking for ways to optimise it and reduce any latency.
Our ClearVision products set us apart from competitors and provide all the cutting-edge tools required by brokers to manage an increasingly complex business with multiple trading platforms, liquidity providers, back office systems and risk books.
What are you expansion plans?
There is growth potential for us in all regions key to FX trading. In particular, we are increasing our focus in Russia following significant interest since the launch of ClearVision. We are also rapidly gaining momentum in Turkey now that ClearVision is fully compliant with Turkish regulation. We continually assess ways to accelerate growth, either organically or via partnerships. We are feeling very positive about the growth opportunities for CFH Clearing in the years ahead!
CFH Clearing is an interbank prime of prime solutions provider for small and medium sized institutional clients and is one of the largest interbank STP venues in the market. For more information, visit www.cfhclearing.com