IG Asia Pte Ltd, the Singapore arm of one of Europe’s largest online trading platforms, has launched IG Prime, a new prime brokerage unit. The Forex Prime Brokerage (FXPB) product was built for clients that include a mid-sized hedge fund, as well as other buy-side institutions like family offices. These institutions are currently struggling to access the wholesale forex price matching community through the present prime brokerage models.
Seeing A Niche And Filling It
The UK-based spread better had initially launched its prime brokerage services all the way back in 2006. However, the company has recently started to bolster its dedicated institutional offerings, with IG expecting a massive market opportunity it’s estimated to be about £500 million in value.
Thus, the IG Prime was created, with its business introducing a liquidity pool that offers to connect investors through a single venue. IG Prime stands as a combination of web-based trading with real-time reporting, built through the support of the global client network of IG, one that’s spread across 16 countries across the globe.
Lowering Use Through Regulation
Simon Myers, the Chief Technology Officer at IG, gave a statement regarding the new launch. He explained that his company’s trading platforms were built to ensure adequate stability, resilience, and speed. These platforms, according to Myers, routinely processes multi-million trades every month and provides access to over 40 global financial markets.
It seems that significant facets of the world’s finance industry are being abandoned due to increasing regulations, the prime brokerage industry being one of them. With banking regulations on the rice, mandating larger minimum levels of capital while mandating more expense reporting, many banks just don’t see it as feasible anymore.
Security Is King
Max Hayden, the Global Head of Prime Brokerage Sales at IG, gave a brief explanation. He stated that hedge fund clients have their biggest priority set at the overall cost, now more than ever. This is primarily due to the industry as a whole gaining mainstream status across the globe. Even so, Hayden explained that these clients still want the comfort that comes with a well-capitalized, secure counterparty.
Haiden is a veteran in the FX industry, having recently been acquired by IG to fill the role of Global Head of Institutional Sales. He primarily focuses on the regions of the UK, Switzerland, and the Middle East and North Africa, or MENA, as well as the Asia-Pacific region. In recent times, Hayden had served as CEO for ITI Capital, helping the multi-asset brokerage and fintech provider for almost two years as such.