Shockwaves of CHF Crisis Impact Foreign Exchange Prime Brokers
Friday,23/01/2015|21:17GMTby
Adil Siddiqui
The impact of the Swiss franc crisis is slowly showing its true light as institutional participants reap risks of the major market move. FXPBs have been directly impacted as bank risk parameters are reviewed.
The contracting FXPB sector has been directly affected by the recent turmoil that hit the Swiss foreign exchange market. Forex Magnates learned that some providers have altered their arrangements with users. Additionally, the move had significant impact on certain clients as the banks re-examined their risk protocols and went as far as terminating certain PB relationships. Thus signifying the fragile nature of the global banking sector.
Credit risk has been a key driver of change in the Foreign Exchange Prime Brokerage market, after gaining some traction post-collapse of Lehman and AIG, the sector has once again entered difficult territory. Bank of America Merrill Lynch, a leading US bank issued notice to certain clients, informing them that they were unable to continue doing business with the firm, a source familiar with the matter stated to Forex Magnates. Barclays is also believed to have been on the wrong side of the dilemma and is reviewing its PB services, thus affecting its users.
Among other major banks, Citigroup's prime services has also been affected by the franc volatility. Providing prime brokerage services to many of the larger retail forex brokers, Alpari UK is a client of their, with the broker's insolvency possibly causing Citi to take a loss on the relationship.
BoAML and Citi both declined to comment.
The FXPB space has seen a number of providers alter their offerings with banks, either integrating the FX desk into the main prime brokerage offering or banks completely distancing themselves from the forex PB markets. SEB, Rabobank and Commerzbank reported that they were exiting the market in 2014.
The change in practise has created a new opportunity for tier-2 providers and aggregators that have relationships with prime brokers and offer their credit lines and Liquidity relationships to other clients. The Prime of Prime sector has seen a sharp rise in the number of providers offering prime capabilities to users that find it difficult meeting the requirements of banks.
FXPB services are used by hedge funds, banks, asset management firms and retail forex brokers. The product has evolved significantly over the years, and the once restricted, VIP, hedge fund-only solution, opened its doors to new participants as users’ needs changed.
A prime broker allows a trading firm to access liquidity and execution capabilities to several counterparties, under the single bank relationship.
PBs offer credit intermediation for over-the-counter transactions which are given up by other banks and executing brokers. In addition, the bank can provide multiple asset classes, including futures, equities and fixed income products, with the ability to cross-margin and have end of day reporting of positions.
The contracting FXPB sector has been directly affected by the recent turmoil that hit the Swiss foreign exchange market. Forex Magnates learned that some providers have altered their arrangements with users. Additionally, the move had significant impact on certain clients as the banks re-examined their risk protocols and went as far as terminating certain PB relationships. Thus signifying the fragile nature of the global banking sector.
Credit risk has been a key driver of change in the Foreign Exchange Prime Brokerage market, after gaining some traction post-collapse of Lehman and AIG, the sector has once again entered difficult territory. Bank of America Merrill Lynch, a leading US bank issued notice to certain clients, informing them that they were unable to continue doing business with the firm, a source familiar with the matter stated to Forex Magnates. Barclays is also believed to have been on the wrong side of the dilemma and is reviewing its PB services, thus affecting its users.
Among other major banks, Citigroup's prime services has also been affected by the franc volatility. Providing prime brokerage services to many of the larger retail forex brokers, Alpari UK is a client of their, with the broker's insolvency possibly causing Citi to take a loss on the relationship.
BoAML and Citi both declined to comment.
The FXPB space has seen a number of providers alter their offerings with banks, either integrating the FX desk into the main prime brokerage offering or banks completely distancing themselves from the forex PB markets. SEB, Rabobank and Commerzbank reported that they were exiting the market in 2014.
The change in practise has created a new opportunity for tier-2 providers and aggregators that have relationships with prime brokers and offer their credit lines and Liquidity relationships to other clients. The Prime of Prime sector has seen a sharp rise in the number of providers offering prime capabilities to users that find it difficult meeting the requirements of banks.
FXPB services are used by hedge funds, banks, asset management firms and retail forex brokers. The product has evolved significantly over the years, and the once restricted, VIP, hedge fund-only solution, opened its doors to new participants as users’ needs changed.
A prime broker allows a trading firm to access liquidity and execution capabilities to several counterparties, under the single bank relationship.
PBs offer credit intermediation for over-the-counter transactions which are given up by other banks and executing brokers. In addition, the bank can provide multiple asset classes, including futures, equities and fixed income products, with the ability to cross-margin and have end of day reporting of positions.
ASX Faces $150M Capital Charge After Scathing Inquiry Finds Years of Neglect
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
