Frances Maguire
Frances Maguire

Top shops - big winners! What's driving improved service and product innovation in FX prime brokerage?

The events of the past 18 months have put credit firmly in the spotlight, giving rise to a new round of product innovation within the FX Prime Brokerage space. Frances Maguire explores how it has also raised the ante on improving customer service levels amongst the leading providers.

The reshaping of the FX prime brokerage market, as both prime brokers and customers reassess their exposure to counterparty credit risk, has led to much greater emphasis on margining and limit monitoring in real time, as the market places greater focus around the management of risk and collateral.“Prime brokers are managing risk themselves by ensuring that their counterparties are safe. Likewise, as the whole issue of risk has increased in focus, algorithmic traders now have the ability to monitor what they are doing in real time,” says Gil Mandelzis, founder and chief executive officer of Traiana.Andrew Coyne, managing director, head of FX Prime and G10 e-Commerce, at Citi says that there is still a focus on credit and many clients are still looking for increased security around their assets held at banks, which Citi is providing, and there is a greater awareness of credit methodologies employed and the amount of collateral they are required to hold. “Prime brokerage clients are managing...continued

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