Banks reconsider prime brokerage models
The rising operational cost of running foreign exchange prime broker (FXPB) businesses is forcing some banks to reconsider their engagement with hedge funds, proprietary trading firms and retail aggregators, making it harder for small and medium-sized clients to access interbank markets.
As the costs of running an FXPB business have continued to rise, the revenue generated from certain client bases has meant that banks have had to scale back operations to customers that make financial sense, due
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