StoneX Expands Prime Brokerage Business with Outsourced Platform

StoneX said its prime brokerage unit has unveiled a new outsourced platform that combines the full scope of its execution services into a one-stop-shop resource for asset managers.

Called ‘Emerging Manager Platform’, the new offering caters to emerging asset managers with a multi-asset product that encompasses global connectivity and middle & back office support. It connects them with StoneX’s ecosystem that counts more than 150 brokers, banks and resource providers, covering equities, foreign exchange, credit, rates and commodities trading for clients.

A blend of digital platforms, end-to-end clearing and execution services and high-touch service will be available for businesses of all sizes, from start-up and system consulting to compliance and operational assistance.

The move comes as StoneX (formerly known as INTL FCStone) is looking to cement its recently-established prime brokerage division. The company acquired Fillmore Advisors last year to extend prime brokerage coverage through outsourced trading and consultancy for institutional asset managers.

"Emerging asset managers increasingly turn to outsourced trading desks to meet the challenges of heightened best execution requirements and market structure changes. Our team provides a premium service to these managers, offering our experience and professional buy-side traders as a solution for managers who require additional headcount and trading bandwidth,” said Andrew Caplan, Head of Outsourced Trading at INTL Fillmore Advisors.

Best Execution in Mind

The new outsourced platform allows users to choose their counterparties which achieves the best execution through a transparent counterparty attribution with the sell side. Further, Emerging Manager Platform enables customers to access real-time market insights and performance Analytics Analytics Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision making. In the trading space, analytics are applied in a predictive manner in an attempt to more accurately forecast the price. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analyt Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision making. In the trading space, analytics are applied in a predictive manner in an attempt to more accurately forecast the price. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analyt Read this Term or connect with prime brokerages.

The new approach could also be seen as a response to increasing transparency requirements which define the conduct of all market participants, including the need for buy-siders to prove the best execution. Best execution is an important part of the Markets in Financial Instruments Directive II (MiFID II).

StoneX and other financial firms have experienced some of their busiest trading days ever in the last quarter as investors have flocked to hedge and reposition their portfolios, amid Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term on global markets. The continued spread of the coronavirus prompted massive increases in trading volumes across all retail and institutional platforms as seen in their monthly updates.

Furthermore, StoneX Group has completed the acquisition of GAIN Capital Holdings, which in July reported its last financial results as an independent business.

Sean M. O’Connor, CEO of StoneX Group, told Finance Magnates in a previous interview that they look to leverage Gain’s highly digitized and efficient on-ramp for smaller customers, and he thinks they can deploy that on-ramp throughout other businesses in order to make their goal of becoming a global institutional grade financial network a reality.