One Stop Shop PoPs - Investing Wisely in the Power of Next Generation FX Prime of Prime Brokers

One of the most dynamic and innovative areas in FX market structure continues to be the prime of prime sector. But in what ways is this varied sector starting to mature, while also continuing to meet the complex demands of customers, prime brokers and global regulators? Nicola Tavendale writes.

First Published: e-Forex Magazine 77 / FX Brokerage Operations / September, 2017

There is currently no standard industry definition of prime of prime (PoP) and so, as a result, clients tend to have their own ideas about the expected levels of service provision, Ramy Soliman, CEO, Stater Global Markets explains. “Access to interbank liquidity, plug and play technology solutions and a conflict-free business model are key requirements that I believe a PoP should be able to offer,” he adds. Historically, a common requirement for broker customers has generally been higher leverage than is available from a tier one prime broker (PB). Soliman adds, “A lot of retail brokers were previously offering very high leverage to their end customers. To achieve this, they used PoPs to access good quality pricing  but in essence, to pass on the capital call to them.  The evolution in the market and the regulatory climate with reduced leverage to retail customers has reduced this need and we see that broker clients are taking a more qualitative approach to their Prime of Prime...continued

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