CFH Clearing Adds BNP Paribas as Its Latest FX Prime Broker

The interbank prime of prime solutions provider CFH Clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term has just announced that it has selected BNP Paribas as its new FX Prime Broker Prime Broker Prime brokers are the designation given to individuals handling a package of services offered by investment banks, wealth management firms, and securities dealers to hedge funds which need the ability to borrow securities and cash in order to be able to invest on a netted basis and achieve an absolute return.There are two types of prime brokers - bank and non-bank corporations. Traditionally major global investment banks have been the predominant players in the space, however recent years have p Prime brokers are the designation given to individuals handling a package of services offered by investment banks, wealth management firms, and securities dealers to hedge funds which need the ability to borrow securities and cash in order to be able to invest on a netted basis and achieve an absolute return.There are two types of prime brokers - bank and non-bank corporations. Traditionally major global investment banks have been the predominant players in the space, however recent years have p Read this Term. The firm says that BNP Paribas was selected following a rigorous process. Its strong credit rating, speed of onboarding and robust systems were particularly impressive, according to CFH Clearing.

As is common with these types of relationships, the details of the deal were not made public. The FX prime brokerage market has been dramatically changing for the past few years, with some large banks either scaling back their prime offerings or simply pulling out altogether.

This has created a space for the rise of prime of prime services but tightening conditions have recently reached prime of prime brokers too, as a result of Black Thursday. Meanwhile, newer players in the prime brokerage field are taking advantage of the harsher environment to further establish their client base.

Nick Mortimer, Head of Prime Brokerage and Clearing at CFH Clearing commented on the announcement: “We are pleased to have secured an additional Prime Brokerage relationship. BNP Paribas has an excellent reputation worldwide as a leading FX Prime Brokerage house. We were impressed with their competitive terms, highly experienced team, strong technological capabilities and a proven track record in the FX industry.

Our relationship with BNP Paribas will help CFH Clearing to build on our existing pipeline of Prime of Prime clients, reinforcing our market leading position as we continue to grow our institutional client base.”