IG Prime, a provider of prime brokerage services for institutional clients, has taken a crucial step to open up its platform to algo traders after integrating with Bloomberg’s global multi-asset trading platform, Execution Management System (EMSX).
The agreement with Bloomberg will provide IG Prime clients with access to Tier 1 bank algo trading suites through EMSX, which encompasses the largest community of buy-side traders and portfolio managers in the world.
Trading algorithms provided by Bloomberg EMSX’s partners offer broker-neutral execution management system through real-time alerts using the Financial Information eXchange (FIX) protocol.
Bloomberg EMSX is a multi-agent trading platform used widely around the world by investment managers, hedge funds, investment banks and brokers. It allows users to send orders to more than 6,500 destinations worldwide, with algorithmic trading support. Additionally, the EMSX integrates news, market analysis and helps portfolio managers discover liquidity and get insights to determine the best execution and trading performance.
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Earlier in April, IG Group launched its new prime brokerage unit under the brand ‘IG Prime,’ which provides synthetic prime and custody services across a range of asset classes including equities, indices, FX, commodities, and cryptocurrencies. IG Prime is intended for a client segment that includes mid-sized hedge funds and family offices and other buy-side institutions, which are currently experiencing a variety of challenges, such as accessing the wholesale foreign exchange price matching community via a prime brokerage model.
The UK spread better has originally launched its prime brokerage services back in 2006 and has recently strengthened its dedicated institutional offering that IG expects to yield a potential market opportunity of around £500 million.
IG Prime business introduces a liquidity pool offering that connects investors via a single venue. It combines web-based trading with real-time reporting and is supported by IG’s global client support network, spanning 16 countries worldwide.
The increase in banking regulation, which mandates increased minimum levels of capital and increases in reporting expenses, has resulted in a lot of banks leaving the prime broking space. The exit of legacy players in the prime brokerage space has indeed allowed new offerings to rapidly gain customers and fill the void.