Equiti Capital, part of Equiti Group, is one the fastest growing Prime Services providers globally. The FCA regulated firm has built a strong reputation for client service, bespoke liquidity provision and multi-asset execution. e-Forex spoke with COO, Michael Ayres about their recent success and plans for future growth.
Equiti Capital are one of the fastest growing participants in the Institutional space. How is business going for you?
We have just closed a record quarter in Q1 2020, following a continuous period of setting, attaining and then surpassing key company milestones. We have seen a combination of growth from existing clients through our tailored services whilst also capturing new business and increasing our overall market share. Building on our recent successes is key for the management team at Equiti Capital as we continue to be a key provider of choice in the space.
With the Institutional market being crowded, what separates Equiti Capital from its competitors?
We pride ourselves in putting our client’s needs first, this is evident from the level of customised service we provide to each of our end users and how this has enabled our clients to thrive in their respective market areas. Our client base has trended towards making Equiti Capital their prime clearing venue based on the fact we offer a range of OTC markets, low-latency execution and multiple regulated onboarding centres across the globe (FCA, JSC, CBA, CMA).
What challenges has the recent market uncertainty brought to Equiti Capital and how have you succeeded in managing them?
Firstly, our priority was to ensure we support the needs of both our clients and our staff. We have seen a shift towards remote working for many different industries which presents technological challenges and really tests the level of business continuity that a company has put in place for such events. We operate across many areas of the globe which presents us with a core strength that we are not concentrated to 1 location. We have geographical diversification in our teams and both the quality and attitude of our staff during this period has allowed for our business to thrive through adversity.
The current economic environment has presented those in the financial market with the challenge of navigating through unprecedented and unpredictable scenarios across many areas of the business. Liquidity and execution, market and credit risk and operational resilience are a few key points of stress for brokers. At Equiti Capital we place an emphasis on our governance, risk, systems and controls, which has led to a unique combination of a forward look in terms of risk management alongside operational efficiencies that allows us to take reactive decisions based on the evolving market conditions.
We have seen a recent increase in the range of technology you offer. Can you share some insight into the focus here?
Over the last 18-months we have built a robust control framework that’s prepared us for scale and growth. We believe in high quality service being at the forefront of what a prime services provider does. Our clients consist of retail brokers, asset managers, banks, small hedge funds and high frequency funds across the globe. With that in mind, expanding our trading infrastructure and distribution channels was paramount to servicing our clients needs.
We recently integrated with OneZero, Gold-I and YourBourse for our margin business, with our FX Agency desk operating with CelerTech and clearing via our FXPB BNP Paribas. Data Centres are setup in LD4, NY4 and TY3 which allows for clients to access low-latency execution with a lower cost of entry. We recently added a DC in Beijing for our direct GUI clients which allows for further reduced latency and faster order execution.
Aside from the client facing technology I’ve mentioned, we have built a range of operational tools that allow for better efficiency, streamlining our in-house processes. This provides an indirect value to our clients as they benefit from the high-performance level that we operate with. We have also built a proprietary risk management system that is designed around our business needs and gives detailed visibility to our Market and Credit Risk in real-time. We have built in automated KRI thresholds and an alerting mechanism to promote a proactive approach to the risk management process.
The Credit landscape has evolved considerably in the past few years. How does Equiti Capital support brokers in managing these changes?
Often when there are challenges presented to the market it allows for strong counterparties to provide innovative solutions and bring market stability and continuity to the industry. At Equiti Capital we couple our strong balance sheet with our vigorous risk monitoring and stress test processes to offer our clients access to competitive NOP and CCY limits that are sized appropriately to support their business needs. Our unique back-end trade infrastructure allows for clients to access liquidity from LD4, NY4 and TY3 independently with a centralised clearing account and global NOP allocation.
This also works on a stream level where we have built multi-level customised liquidity streams housed within one consolidated risk view accessed through a single client trading GUI. This allows seamless risk management and monitoring for our clients. We can also operate with both soft and hard limits, and really tailor the setup for each client which is a truly unique proposition in the space. These factors allow our clients to operate their businesses with ease, so they can really focus on delivery of strategy and growth potential.