AWARDS NatWest Markets wins two awards
Foreign exchange prime brokerage (PB) has experienced a turbulent time since January 15, 2015, the date that was followed by the knee-jerk reaction of raising assets-under-management (AUM) thresholds for clients and wide-scale retrenchment from the space.
There are signs the appetites of prime brokers are snapping back, but the hierarchy and priorities of both clients and dealers have changed. While traditionally, FXPB operations were built on scale and moved the biggest global institutions into pole position, clients place a lot more emphasis on flexibility today, putting the nimblest dealers at an advantage.
“This year, we have continued to focus on adapting traditional FXPB services to better meet the needs of current market participants – some good examples are our approach to credit and customer connectivity,” says Simon Manwaring, head of currencies trading at NatWest Markets.
NatWest Markets has been voted Best Bank for FX Post-Trade Services and Best Bank for FX Prime Brokerage at the 2017 FX Week Best Banks Awards.
Much of NatWest Markets’ success is built on the flexibility that clients gain from its services. It is one of the few banks that did not impose minimum AUM requirements after the Swiss National Bank event, but continued to service the full spectrum of hedge funds.
Across the industry, regulation continues to bring challenges for PB and our customer base… we think this presents significant opportunities as the role of prime brokers is becoming more important to a wider range of customers
Simon Manwaring, NatWest Markets
The bank has also put connectivity at the heart of its offering, doing away with the traditional labels of ‘customer’ and ‘broker’, and introducing the cover-all term of ‘participant’. Manwaring says the bank has made an investment to bring its customer services team directly into the business, ensuring a single front-to-back unit.
“Working with our dedicated PB legal team, we have enabled the broadest range of customer access, both through our extensive customer-to-customer network and wider market participants, including customers of another prime broker,” he says.
On top of its traditional hedge fund client base, NatWest Markets has seen an uptick in demand from intermediaries such as agency brokers, who have unique requirements when bringing together their own customers and liquidity providers.
Tailored models
“We have tailored our models to meet their specific needs, including matched principal brokers, e-platforms, non-bank LPs, ECNs [electronic communication networks], FXIs [FX intermediaries], RGU [reverse give-up] or IDB [interdealer] voice brokers, and the prime-of-primes,” Manwaring says.
The wide range of available PB models has resulted in a strong pipeline of new customers, with many of these new business relationships coming from existing referrals. And regulatory requirements, such as the introduction of uncleared margin requirements, have led new customer types to explore FXPB as well.
NatWest Markets is currently working with several asset managers to develop repo solutions, and to help them gain margin efficiencies and reduce pressure from the rising cost of capital.
“Across the industry, regulation continues to bring challenges for PB and our customer base. However, we think this also presents significant opportunities as the role of prime brokers is becoming more important to a wider range of customers,” Manwaring says.
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 Awards
Asia FX Awards 2024: The winners
The FX Markets Asia FX Awards present 43 categories, determined by an esteemed judging panel comprising industry experts and FX professionals across Apac. They have paid attention to firms that brought unique and innovative ways to fulfil industry needs…
Best blockchain technology service provider: Talos
By building a robust ecosystem with a blueprint based on traditional asset classes, Talos has attracted a network of the most important institutional players to its digital asset trading platform
HSBC wins six Apac FX house of the year awards
With one of the strongest footprints in the Asia-Pacific region (Apac), HSBC provides international clients with an extensive local FX franchise while facilitating local clients’ access to international markets
Best FX prime broker and Best compression/optimisation service for FX: HSBC
With one of the largest FX networks worldwide – and strong coverage in Asia and other emerging markets – HSBC’s FX prime brokerage remains a strategic partner to key financial institutions
Best aggregator and Best FX analytics provider: oneZero
oneZero continues its rapid growth as FX brokers, banks and non-banks in Asia and beyond benefit from the advanced features its multi-asset trading and analytics technology provide
Firms seek optimisation gains as UMR and SA-CCR bite
A wider range of market participants is taking advantage of service providers such as OSTTRA’s optimisation cycles to drive margin and counterparty credit risk efficiencies across asset classes including FX, rates, equities, commodities and credit
Best FX overlay manager: State Street
In the most challenging market environment in many years, demand for State Street’s currency management offering spiked in 2022 as market participants sought assistance in minimising their FX risk and optimising their hedging activities
Best settlement initiative: CLS
Created 20 years ago to mitigate FX settlement risk, CLS continues to lead the settlement sphere with new solutions designed to meet the challenges of an ever-evolving FX market