As large banks are contracting their FX prime broker businesses or leaving altogether, an opportunity has been created for smaller players to enter the market. Typically using a prime of prime (PoP) model, these smaller prime brokers are customers of larger banks and offer credit that is extended to them by these banks to their customers. Among the PoP firms that have been able to grow their businesses supporting the now under-served retail broker and smaller hedge fund and asset manager segment are Sucden Financial, FC Stone and more recent entrant Saxo Bank.
Adding to the list of prime providers is GCM Prime, a new UK regulated broker. Headed by longtime FXCM executive Adam Toro, who left the retail broker to take on the CEO role, GCM Prime will be providing an end to end solution for brokers including white label trading platforms, back office solutions and access to liquidity from numerous trading venues. The firm also plans on targeting high frequency traders who can integrate their aggregated liquidity streams via API. Available liquidity will include FX, CFDs and metal trading.
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Arriving from FXCM, Toro has been working at the retail broker since 2003. During his tenure with FXCM, he has served in a number of senior roles, including most recently as its Vice President, Institutional Sales and Business Development. In his new CEO role, he will be tasked with focusing on growing GCM Prime’s B2B business among brokers, corporates and other channels.
Mr. Toro commented on the appointment in a recent statement to Finance Magnates: “As an industry leader, FXCM afforded me tremendous opportunities to grow and to learn all facets of the brokerage business. With GCM Prime poised to take advantage of the highly fragmented market space, the opportunity to build a team of experienced professionals was too enticing to pass up.”