Neill Penney is Head of Product Development at FXall
Neill Penney is Head of Product Development at FXall

FXPB - towards the elimination of post trade inefficiencies

Prime Brokerage involves a complicated post-trade workflow. Neill Penney demonstrates the improvement in efficiency that's achieved by incorporating STP into the heart of the PB process.

First Published: e-Forex Magazine 12 / Features / October, 2003

The last few years have witnessed a tremendous growth in the prime brokerage industry and the array of services offered by banks to serve their customers. As the industry matures, the focus is now on reducing costs by streamlining middle and back office processes. As with conventional FX trading, the key to improving efficiency for all participants is to incorporate Straight Through Processing into the heart of the prime brokerage process.The most advanced prime brokers now provide customers with integration to their trade management systems and online reporting. Often a prime broker's unique suite of customer facilities is the primary differentiator to its clients.However messaging between the parties remains largely manual, causing the usual problems associated with manual processing: increased staff costs, longer processing times, higher error rates, and greater operational risk.With more capital needed to support the increased operational risk, prime brokers need to reduce the amount of credit they make...continued

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