Convergex Partners with FCStone to Launch Futures Prime Brokerage

One of the biggest agency-focused global brokers, Convergex, has announced today that it has entered into a clearing agreement with INTL FCStone Financial Inc. (NASDAQ:INTL) to offer its clients access to FCStone's futures Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term capabilities and prime brokerage platform. With this new arrangement, Convergex Prime Services will be able to offer 24-hour trading access and hedge fund level portfolio and risk reporting features, as well as full access to FCStone's hedge fund level research.

The firm says Convergex Prime Services will Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term its existing platform by offering a new suite of futures offerings geared towards commodity trading advisors and futures hedge fund managers. The futures platform will also include risk reporting and controls, daily portfolio reporting, multiple clearing options, a prime brokerage dashboard, and full support.

"While we have always offered our clients comprehensive futures execution and clearing services, we are focused on providing additional services to this growing segment of the marketplace to meet the needs of our clients," said Doug Nelson, Convergex executive managing director and head of global clearing and prime services. "With our new relationship with FCStone, Convergex is committed to creating a full-service offering designed to appeal to fund managers that are looking for multiple clearing options, additional execution platform choices and better pricing."

Last month INTL FCStone made the headlines when its Singapore-based subsidiary received a Capital Markets Services License from the Monetary Authority of Singapore. The license granted it a higher degree of latitude over the activity of trading in futures contracts relegated to the energy, metals and agricultural markets.