Devin Graham Head of FX Prime Brokerage, UBS
Devin Graham Head of FX Prime Brokerage, UBS

Technology: Fuelling the growth of FX Prime Brokerage

Devin Graham explains why the future success of FX prime brokerage will rely heavily on technological advances.

The FX market remains one of the most liquid and deepest markets in the world and continues to attract investors at a growing pace. According to the Bank of International Settlements Survey in 2004, the average daily turnover rose from $1.38 trillion in 2001 to over $1.88 trillion by the end of 2004. Similar to the expansion of the FX market, the number of hedge funds that trade FX as an asset class has also increased significantly over the past couple of years. Many factors have contributed to this growth, including increased interest from the investor community in alternative strategies and reduced hurdles to entry. However, it is the role technology has played that deserves recognition as a significant contributor to client growth and as an essential requirement for banks to manage operational risk.Traditional role of FX Prime Brokerage ProviderFX prime brokerage began as a centralised clearing, margin and settlement service for investors. The client would place collateral with their prime broker and...continued

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