Exclusive: Jefferies to Migrate FX Prime Brokerage Clients to Another Institution

Thursday, 01/09/2022 | 08:17 GMT by Arnab Shome
  • The company is exiting its forex prime brokerage business.
  • Several Jefferies clients reportedly found alternative clearing options.
Jefferies

Finance Magnates understands through an as yet unconfirmed report, that Jefferies Financial Group is migrating its forex prime brokerage clients to another institution through an Introducing Brokerage (IB) relationship.

The name of the institution to which it is transferring its FX prime brokerage business is, at this stage, yet to be confirmed. However, a source close to Jefferies said the US company is expected to reveal the details officially by the end of this week.

Finance Magnates has reached out to Jefferies for comment and will update the article with the firm’s response accordingly.

Jefferies operates from its headquarters in New York, along with offices in more than 30 cities around the world. It offers clients capital markets and financial advisory services, institutional brokerage, securities research, as well as wealth management, and asset management.

Exiting Prime Brokerage

The announcement of Jefferies shutting its prime brokerage division was first reported by Finance Magnates in March, citing unconfirmed sources. Two of the top FX Prime Brokerage executives at Jefferies, Brandon Mulvihill and Anthony Mazzarese left the company earlier this year to launch a cryptocurrency exchange, Crossover Markets.

“We are prioritizing the areas where we can best serve our clients with differentiated capabilities, and in doing so, we have decided to reduce our FX prime brokerage footprint,” a Jefferies spokesperson earlier told Bloomberg.

Additionally, earlier this year, the industry source highlighted that Jefferies already communicated to its clients about the plans to shut down the prime brokerage business. This prompted Jefferies’ prime brokerage clients to seek alternative clearing options. So, it will be interesting to know how many clients Jefferies is left with to migrate to the other prime brokerage, which according to unofficial estimates is less than 10 percent.

Finance Magnates understands through an as yet unconfirmed report, that Jefferies Financial Group is migrating its forex prime brokerage clients to another institution through an Introducing Brokerage (IB) relationship.

The name of the institution to which it is transferring its FX prime brokerage business is, at this stage, yet to be confirmed. However, a source close to Jefferies said the US company is expected to reveal the details officially by the end of this week.

Finance Magnates has reached out to Jefferies for comment and will update the article with the firm’s response accordingly.

Jefferies operates from its headquarters in New York, along with offices in more than 30 cities around the world. It offers clients capital markets and financial advisory services, institutional brokerage, securities research, as well as wealth management, and asset management.

Exiting Prime Brokerage

The announcement of Jefferies shutting its prime brokerage division was first reported by Finance Magnates in March, citing unconfirmed sources. Two of the top FX Prime Brokerage executives at Jefferies, Brandon Mulvihill and Anthony Mazzarese left the company earlier this year to launch a cryptocurrency exchange, Crossover Markets.

“We are prioritizing the areas where we can best serve our clients with differentiated capabilities, and in doing so, we have decided to reduce our FX prime brokerage footprint,” a Jefferies spokesperson earlier told Bloomberg.

Additionally, earlier this year, the industry source highlighted that Jefferies already communicated to its clients about the plans to shut down the prime brokerage business. This prompted Jefferies’ prime brokerage clients to seek alternative clearing options. So, it will be interesting to know how many clients Jefferies is left with to migrate to the other prime brokerage, which according to unofficial estimates is less than 10 percent.

About the Author: Arnab Shome
Arnab Shome
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About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6404 Articles
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