PB concentration risk a concern as volatility picks up
Global head of Currenex says the lack of a dynamic FXPB space is a worry as non-bank liquidity providers need access
The year 2017 is set to be characterised by a "storm of uncertainty", as macroeconomic fundamentals heighten volatility in a market that is undergoing significant structural changes, driven by regulation.
This background could bring to the fore concerns about concentration risk in the foreign exchange prime brokerage (FXPB) space, where the number of providers has been diminishing since January 2015, at the same time as they are becoming increasingly important for the health of markets because
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact customer services - www.fx-markets.com/static/contact-us, or view our subscription options here: https://subscriptions.fx-markets.com/subscribe
You are currently unable to print this content. Please contact customer services - www.fx-markets.com/static/contact-us to find out more.
You are currently unable to copy this content. Please contact info@fx-markets.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@fx-markets.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@fx-markets.com
More on Prime Brokerage
Z.com Global Markets to launch prime-of-prime service
The firm will wind down its retail arm by the year-end
StanChart prime services to accept Chinese bonds as collateral
Inclusion will reduce collateral drag for PB clients ahead of stricter initial margin rules
JP Morgan tells HFTs: you’re ‘all finding homes’
But credit intermediation space has inefficiencies that more kill switches would address, conference hears
PoP debate rekindles following Stater Global Markets exit
Prime-of-prime broker leaves space after financial backer withdraws support
Record builds synthetic FXPB offering
Specialist currency manager will use tri-party model to move securities collateral between banks
Stater to withdraw from prime-of-prime
Launched in 2016, Stater Global Markets has focused on smaller hedge funds and retail brokers
Traiana boosts risk controls for FXPBs
Providers can be more specific about the risks they are willing to take
Stater Global Markets partners oneZero
The prime-of-prime broker gains access to a network of 200 market-makers and takers