ADS Securities unveils prime of prime for institutional FX firms.
A combination of higher capital requirements, higher costs and reduced profitability has meant that banks are no longer offering the credit facilities institutions need to trade FX.
Abu Dhabi-based online Forex and CFD broker ADS Securities LLC has just announced the launch of its prime of prime (PoP) product for FX providers that either don’t have an existing prime broker (PB) or need additional credit lines along with access to either their own Liquidity sources or from ADS’s liquidity.
ADS created its new PoP product offering after it saw an opportunity to utilize its strong relationships with existing PBs along with its high level of capitalization, in order to offer firms credit lines to support their PB needs.
The company has a long-standing principal trade offering through its ADS Prime offering, yet that required firms to uses the company's own sourced liquidity, whereas the new PoP offering allows firms to use ADS to settle their trades (as their PB) even when the liquidity provider (LP) is not ADS (which sources its liquidity from nearly 80 providers).
This allows a firm that is already talking to another LP to come to ADS and ask for it to be their PB on the trades with that LP, and at a cost of an extra $1 per million, versus free when using ADS liquidity which has its fee embedded in the spread already, as explained by people familiar with the product.
A company representative explained to Finance Magnates that the execution on ADS’ Liquidity is free of charge which helps clients with the average PB fee paid each month, and included the following example where the average PB fee per million is calculated using the following formula:
Average Prime Brokerage fee per million = (sum of x + y) / (total monthly volume in millions), when based on 50% of Execution (a) on the Month vs ECN charged at $x, and 25% of Execution (b) on the Month vs Direct Bank charged at $y, and 25% of Execution (d) on the Month vs ADS Liquidity is charged at $0 per million.
Commenting in the company’s official announcement, Marco Baggioli, Chief Operating Officer (COO) of ADS Securities London Limited, said: “The reduction of credit and risk appetites and the subsequent decline in banks offering FX-specific prime brokerage services has led to clear market demand for a true Prime-of-Prime product, a service that provides customers with as close to a direct prime brokerage relationship as possible. This is precisely the gap in the market ADS Securities will fill.”
The announcement included ADS referencing the challenges that have emerged in the PB industry for forex dealers after the Swiss National Bank event in January of 2015 which has since caused a credit squeeze and higher capital requirements for brokerages to access PB services.
James Watson, Managing Director of ADS Securities London Limited, added: “A combination of higher capital requirements, higher costs and reduced profitability has meant that banks are no longer offering the credit facilities institutions need to trade FX."
Mr. Watson further explained: "ADS Securities Prime-of-Prime offering has been developed to help these firms—even those that have Prime Brokers but still do not have the trading lines they are looking for because they may not meet the criteria in terms of size, flow, profitability or risk. Our unique position in the market and high level of capitalisation allow large brokerages like ADS Securities to play a crucial role in supporting FX trading.”
A combination of higher capital requirements, higher costs and reduced profitability has meant that banks are no longer offering the credit facilities institutions need to trade FX.
Abu Dhabi-based online Forex and CFD broker ADS Securities LLC has just announced the launch of its prime of prime (PoP) product for FX providers that either don’t have an existing prime broker (PB) or need additional credit lines along with access to either their own Liquidity sources or from ADS’s liquidity.
ADS created its new PoP product offering after it saw an opportunity to utilize its strong relationships with existing PBs along with its high level of capitalization, in order to offer firms credit lines to support their PB needs.
The company has a long-standing principal trade offering through its ADS Prime offering, yet that required firms to uses the company's own sourced liquidity, whereas the new PoP offering allows firms to use ADS to settle their trades (as their PB) even when the liquidity provider (LP) is not ADS (which sources its liquidity from nearly 80 providers).
This allows a firm that is already talking to another LP to come to ADS and ask for it to be their PB on the trades with that LP, and at a cost of an extra $1 per million, versus free when using ADS liquidity which has its fee embedded in the spread already, as explained by people familiar with the product.
A company representative explained to Finance Magnates that the execution on ADS’ Liquidity is free of charge which helps clients with the average PB fee paid each month, and included the following example where the average PB fee per million is calculated using the following formula:
Average Prime Brokerage fee per million = (sum of x + y) / (total monthly volume in millions), when based on 50% of Execution (a) on the Month vs ECN charged at $x, and 25% of Execution (b) on the Month vs Direct Bank charged at $y, and 25% of Execution (d) on the Month vs ADS Liquidity is charged at $0 per million.
Commenting in the company’s official announcement, Marco Baggioli, Chief Operating Officer (COO) of ADS Securities London Limited, said: “The reduction of credit and risk appetites and the subsequent decline in banks offering FX-specific prime brokerage services has led to clear market demand for a true Prime-of-Prime product, a service that provides customers with as close to a direct prime brokerage relationship as possible. This is precisely the gap in the market ADS Securities will fill.”
The announcement included ADS referencing the challenges that have emerged in the PB industry for forex dealers after the Swiss National Bank event in January of 2015 which has since caused a credit squeeze and higher capital requirements for brokerages to access PB services.
James Watson, Managing Director of ADS Securities London Limited, added: “A combination of higher capital requirements, higher costs and reduced profitability has meant that banks are no longer offering the credit facilities institutions need to trade FX."
Mr. Watson further explained: "ADS Securities Prime-of-Prime offering has been developed to help these firms—even those that have Prime Brokers but still do not have the trading lines they are looking for because they may not meet the criteria in terms of size, flow, profitability or risk. Our unique position in the market and high level of capitalisation allow large brokerages like ADS Securities to play a crucial role in supporting FX trading.”
EU Parliament Imposes €10,000 Cash Payment Limit in New Anti-money Laundering Legislation
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
👍 Facebook: https://www.facebook.com/financemagnates/
📸 Instagram: https://www.instagram.com/financemagnates_official
🐦 X (Twitter): https://twitter.com/financemagnates/
📡 RSS Feed: https://www.financemagnates.com/feed/
▶️ Telegram: https://t.me/financemagnatesnews
Don't miss out on our latest videos, interviews, and event coverage.
🔔 Subscribe to our YouTube channel for more!🔔
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
👍 Facebook: https://www.facebook.com/financemagnates/
📸 Instagram: https://www.instagram.com/financemagnates_official
🐦 X (Twitter): https://twitter.com/financemagnates/
📡 RSS Feed: https://www.financemagnates.com/feed/
▶️ Telegram: https://t.me/financemagnatesnews
Don't miss out on our latest videos, interviews, and event coverage.
🔔 Subscribe to our YouTube channel for more!🔔
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
👍 Facebook: https://www.facebook.com/financemagnates/
📸 Instagram: https://www.instagram.com/financemagnates_official
🐦 X (Twitter): https://twitter.com/financemagnates/
📡 RSS Feed: https://www.financemagnates.com/feed/
▶️ Telegram: https://t.me/financemagnatesnews
Don't miss out on our latest videos, interviews, and event coverage.
🔔 Subscribe to our YouTube channel for more!🔔
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
👍 Facebook: https://www.facebook.com/financemagnates/
📸 Instagram: https://www.instagram.com/financemagnates_official
🐦 X (Twitter): https://twitter.com/financemagnates/
📡 RSS Feed: https://www.financemagnates.com/feed/
▶️ Telegram: https://t.me/financemagnatesnews
Don't miss out on our latest videos, interviews, and event coverage.
🔔 Subscribe to our YouTube channel for more!🔔