ADS Securities has developed a customized version of its FX Prime Brokerage solution, which is aiming to cater to the needs of institutional clients in Asia. The offering is tailored to include more local currencies via non-deliverable forwards (NDFs) and with expanded liquidity and credit lines.
Starting from today, ADS Securities will deliver to its institutional clients in Asia a prime of prime solution that grants access to over 45 different currencies and precious metals with disclosed liquidity from over 80 venues. According to the announcement of ADS, the company is aiming to grant access to a tailored liquidity pool that permits clients to retain their relationships with existing LPs.
There are more currencies in Asia than in Europe or anywhere else in the world
The clients will be granted access to the liquidity pool with no mark-up on the direct liquidity seen from the chosen dealers, with the operation supported locally in Asia.
Commenting on the announcement, the Executive Managing Director & Global Head of Brokerage of ADS Securities, Marco Baggioli, said: “In just two months our innovative Prime of Prime service has generated enormous interest. Much like Europe, there is a clear need in Asia for credit intermediation services that are a true reflection of a direct prime brokerage relationship, with direct access to liquidity backed by strong capital and credit relationships.”
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“There are more currencies in Asia than in Europe or anywhere else in the world, and Asian institutions need to trade in their domestic currencies. Our offering is designed to meet the growing demand for improved access and liquidity to NDF pricing,” he added.
Differentiating Between Asia and the Rest of the World
The new Prime of Prime of ADS Securities will be led by Louisa Kwok, who has been appointed as Head of Relationship Management for the EMEA region and recently joined ADS Securities from BNP Paribas, where she worked in the French bank’s prime brokerage and clearing businesses.
The local market for Asian brokerages can be different to the established majors trading in Europe and the U.S.. With the added complexity of offering certain currency pairs, not every prime broking solution has been well tailored to service the needs of institutional clients.
The costs associated with Asian prime broking services have typically been much higher due to infrastructure restrictions and the costs associated with dedicated lines and reducing latency.
The Managing Director for Asia at ADS Securities, Francis Lee, said: “The market in Asia is evolving from the Introducing Broker (IB) model to full institutional provisioning. Brokerages in Asia have an on-the-ground presence, and possess the local know-how. The brokerages with London offices, meanwhile, have the advantage of operating in the largest FX hub in the world, and are protected by one of the most recognized regulatory authorities (FCA) in the world.”
“Firms like ADS Securities who have strong balance sheets, a global footprint and an exceptional network of relationships with multiple top-tier prime brokers behind and supporting our PoP offering, have a clear advantage,” Lee concluded.