Foreign Exchange Prime Brokerage
Regulators missing the elephant in the room
The changes happening in the FX market have woken banks to credit risks they were previously unexposed to
CFTC's FXPB reporting rules add to regulatory confusion
CFTC reporting rules, introduced 18 months ago, force FX prime brokers to take evasive action while awaiting clarity
FXPBs, agency desks set to resume derivatives trading
After 14 months and failed attempts to relaunch the agency brokerage business in the US, new proposals spark light at the end of the tunnel
CRT Capital shuts FX agency desk
CFTC regulations and prime broker conservatism over them have led to the intermediary's closure, according to its FX head
Fluent launches PB risk management solution
Product aims to solve the problem faced by prime broker banks lacking adequate pre-trade risk management systems
Black Phoenix glitch highlights PB dangers
A Chicago-based firm's rogue algorithm highlights the dangers of running PB relationships without appropriate credit risk controls
Banks reconsider prime brokerage models
Small and medium-sized clients find it harder to access interbank markets
Economies of scale create two tiers in FXPB
The high cost of operating in prime brokerage is the biggest challenge for less-established players looking to gain market share
BCS Prime eyes domination in USD/RUB market
Having given HFT firms direct access to the Russian ruble, the new UK subsidiary of Russian brokerage BCS is now looking to diversify its client base into the institutional market
Trade reporting is driving FX options out of the US, say dealers
FX options traders looking to avoid Dodd-Frank legislation have been deliberately changing their trading habits to avoid reporting regulation
FX prime brokers continue to shun four-way agreements
Four-way agreements too difficult under Dodd-Frank external business conduct standards, say prime brokers
FXPBs call for new approach to credit allocation
Overallocation of credit remains a challenge for FX prime brokers, but the industry is looking to create a clearer picture of where credit is being used
Agency desks hopeful new protocol will solve Dodd-Frank issues
A preliminary protocol to enable four-way FX prime brokerage involving agency desks has been agreed ‘in principle’ and could allow agencies to scale up their activities, having been largely reduced to spot since May
Compressed margins put tight squeeze on FXPB
The combination of rising costs and increased competition in FX prime brokerage has led to a squeeze on margins, but as the business attracts a wider range of clients than ever before, there is still clear demand for those that can afford to keep…
Industry set to miss CFTC deadline on intermediated FXPB
The deadline for FX agency desks and prime brokers to find a solution to the allocation of Dodd-Frank external business conduct responsibilities expires today
Best liquidity aggregation system: TraderTools
TraderTools wins the award for best liquidity aggregation system after adding a unique product to the increasingly crowded market with its LightFX hosted service
CFTC bows to agency desk concerns with further relief letter
In a time-limited relief letter issued yesterday, the CFTC recognises concerns expressed by agency firms over the implications of the external business conduct rules
Agency brokers ‘encouraged’ by CFTC response to concerns
Lobbyists are hopeful a resolution will be reached to their concerns over external business conduct rules that have forced agencies to retreat from FX derivatives
FX prime brokers welcome CFTC relief
CFTC provides last-minute relief for FX prime brokers, having listened to arguments that the market could be seriously impeded by business conduct rules
Further exits at Morgan Stanley as US sales head departs
Thomas Haskins and Juha Sternberg have left the US bank in New York and London, as cuts continue to bite into the FX business
SEB eyes FX growth in London under new regional head
In his new role as head of FX for London, Shaun Barham has a mandate to grow the bank’s forex business in the city, as well as to bolster the FX prime brokerage business, which now reports directly to him. He talks to Robert Mackenzie Smith
Saxo Bank launches FX prime brokerage for institutional clients
The Danish bank will launch FX Prime on January 23, having developed the service in collaboration with MarketFactory
Taking HFT to task
As a small group of high-frequency traders (HFTs) rise to prominence as market-makers in spot FX, the reliability of their prices during times of market stress has been called into question – so much so that electronic trading platforms are taking steps…
UBS holds Swiss franc lead despite intervention
UBS wins best bank for the Swiss franc and best bank for post-trade services as it continues to provide liquidity despite the challenges posed by the EUR/CHF floor