IS Prime has announced yet another industry partnership this Tuesday, with the prime of prime broker pairing up with Pelican Trading, a provider of social copy-trading solutions and white label for brokers.
Under the agreement, the liquidity provider has integrated Pelican’s copy-trading technology into its own trading platforms. Therefore, IS Prime can now offer these tools to its own clients. According to the statement released by the company today, these tools form part of the Prime of Prime’s solution to help drive volumes and customer engagement.
Pelican partnership combines with Batch Hedger
The partnership with Pelican follows on from IS Prime launching its proprietary batch hedging tool in July of 2019, dubbed Batch Hedger. This tool allows brokers to provide the same fill price to all traders involved in social trading.
Specifically, the company’s batch hedging algorithm was designed to support EA, copy, and social trading activity. Therefore, it can handle flow that historically, providers have had to avoid in the past.
Therefore, through the partnership announced today, combined with the Batch Hedger, the liquidity provider can now provide clients with copy and social trading solutions, which can help drive volumes and maintain core spreads at the same time.
Commenting on the partnership, Raj Sitlani, Managing Partner at IS Prime, said in the statement: “We have seen a huge rise in social and copy trading across the industry. Partnering with Pelican allows us to extend our reach and quickly deliver solutions that clients need, helping them grow. Pelican’s technology, combined with its FCA regulation, is a very compelling offering.”
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The prime of prime brokerage is regulated by the Financial Conduct Authority (FCA) as a Prime of Prime and liquidity provider. The company has recently been expanding its offering, namely, the firm secured a forex trading license in Hong Kong, as Finance Magnates reported.
“Pelican specialises in working with many of the best-known brokerages in the market, enabling them to offer new and innovative products to their clients,” added Mike Read, Co-Founder and CEO of Pelican Trading.
“Partnering with IS Prime, a leading Liquidity Provider, with execution technology specifically designed for this sort of flow, enables our clients to have a more effective trading experience.”
Speaking to Finance Magnates, Robert Buxton, Sales Director, IS Prime said: “If copy trading is not executed correctly then the effect of hundreds, if not thousands, of orders hitting liquidity providers simultaneously can make these orders appear extremely toxic and can move the market.”
“This has the effect of leaving Liquidity providers with significant losses as well as giving a poor trading experience to the end-clients themselves. The first order of the batch may be filled at market but overall there will often be significant slippage on the vast majority.
The combination of a poor client and a poor LP experience can negatively impact brokers over time as client volumes from these strategies fall and, at the same time, LPs widen spreads to protect themselves from toxic flow. Using IS Prime’s proprietary tools, specifically designed to execute this type of trading, we are able to send huge volumes of orders to market whilst simultaneously protecting LPs and optimising execution for the end client. “