Boston Technologies launches own Prime Brokerage

Boston Technologies, the company behind the first MT4 Bridge Bridge The bridge or liquidity bridge is an essential component for brokers that are enabling their clients to trade at interbank rates directly via a Prime Broker or a Prime-of-Prime (PoP). While market makers do not require a bridge in order to service its clients, brokers which are sending through orders to a liquidity provider or an electronic execution venue need a bridge to connect their trading platform to the interbank market.Bridges are used extensively in forex trading, specifically for Metat The bridge or liquidity bridge is an essential component for brokers that are enabling their clients to trade at interbank rates directly via a Prime Broker or a Prime-of-Prime (PoP). While market makers do not require a bridge in order to service its clients, brokers which are sending through orders to a liquidity provider or an electronic execution venue need a bridge to connect their trading platform to the interbank market.Bridges are used extensively in forex trading, specifically for Metat Read this Term, has now launched its own FX Prime Brokerage - BT Prime.

It seems that BT is looking for additional streams and that it believes that its institutional contacts can help its clients get better Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term. In effect, BT is creating a liquidity eco-system for small-medium MT4 brokerages. Why small? Because large brokerages like FXCM have better contacts than BT. If this is the case, I don't see how BT is different from dozens of other PB's out there.

It seems that the Prime Brokerage is active yet as there are several 'soon' sections on the website but you can tell that BT is serious. I have reservations regarding some of the content - such as "Our first customer started with $50k and now it makes $200k a month" or "no requotes or rejections" which I think is not something anyone should write on its website but other than that the site is pretty informative and straightforward.

At this point, BT Prime's customers are only price takes - that is STP and BT promise that soon they will be able to become price givers as well - that is ECN. Amongst its LPs BT mentions Citi, Deutsche Bank, Nomura and surprisingly Currenex which is another technology provider just like BT.

BT claims not to charge any commission at all and its business model here is probably similar to it's bridge business model - spread mark-up.

One last issue is that I don't think this Prime Brokerage is regulated at this point, at least there is no mentioning on the website and it would be interesting to understand the legal set-up behind this ambitious start-up.