Frances Maguire
Frances Maguire

FX Prime Brokerage: What does it take to be a provider of choice?

The dramatic defaults of Lehman Brothers and AIG prompted a flight to quality in the FX prime brokerage market. Frances Maguire looks at what it takes to be a provider of choice in the current environment and in the future.

First Published: e-Forex Magazine 37 / Features / October, 2009

Now that the dust is beginning to settle, the landscape of the FX prime brokerage model is changed. There have not only been exits from the market during the past year but some banks have decided to downscale and focus on core competencies, while others have seized the opportunity to enter the market, either from scratch, or by building out their FX offerings.However, there is still everything to play for as the FX prime brokerage landscape reshapes and many believe that the current model will continue to evolve in the coming years and move away from being simply clearing and credit provision to helping client manage risks.SEB, the largest Nordic FX provider, with a Luxembourg-based currency multi-manager fund, entered the FX prime brokerage market in 2006 and is developing a global platform, alongside its long-standing futures clearing and equity prime brokerage businesses.Mark McDonnell, head of FX prime brokerage at SEB Merchant Bank, has been building out the bank’s FX prime brokerage offering,...continued

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