FXPBs see compression tech as key for credit optimisation
FX Markets USA: Providers hope new tech solutions can help replenish credit lines to hedge funds
Foreign exchange prime brokers (FXPBs) are increasingly harnessing technologies to clean up margin-intensive options portfolios and help them reallocate credit to their largest clients.
Compression and novation tools have become an effective way for FXPBs to reduce the notional footprint on their hedge fund clients’ FX options books, in response to the uncleared margin rules (UMR).
Novation, the practice of transferring the contract from one dealer counterparty to another, is commonly used for
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 info@fx-markets.com or view our subscription options here: https://subscriptions.fx-markets.com
You are currently unable to print this content. Please contact info@fx-markets.com 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.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
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. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@fx-markets.com
More on Tech and data
New LLMs are proving to be surprisingly good quants
Strides in AI’s ability to do maths mean models can plausibly help with research
Can AI be the great equaliser in e-FX?
FX market-makers see real benefits for agentic AI in code generation and data analysis
ForexClear stress losses surge as member concentration rises
Top five member share of IM jumps 9pp as stress losses hit six-year high
Offshore speed, onshore depth: a new reality for FX liquidity
Stark differences emerge between onshore and offshore pricing during macroeconomic news events, finds LMAX Group’s head of data
Rethinking FX sales – unlocking margin and client value through modern technology
Understand why legacy FX sales tools have become a commercial liability and how modern, human-centred platforms can improve productivity, reduce risk and enhance client outcomes
Kyriba sees uptake in AI-assisted FX hedging tools
Automated data collection and cleaning helps corporates create better hedges and has cut unexplained P&L moves by 87%, says vendor
FX swaps price discovery challenges buy side, says Vanguard
Lack of transparent price validation data for FX forwards and swaps is holding back buy side, Vanguard’s head of FX says
Caution needed for vendor-generated FX dealer suggestions
FX Markets Europe: TCA services to help buy side automate counterparty selection may offer incomplete execution analysis
