CFD Prime is the Latest Innovation Driving Growth in the Trading Ecosystem
Posted by Colin Lambert. Last updated: November 17, 2021
The ability of financial market operators to reinvent and innovate has been one of the key successes driving industry growth in the last decade. With the events of the past 12 months creating an ever-more challenging market backdrop, Mario Sanchez, managing director and global head of sales at FXCM Pro, sheds light on the firm’s latest innovation to better meet the needs of wholesale market participants – a CFD Prime service.
Reinvention and innovation are the foundations of sustained market growth. The introduction of prime brokerage, for example, opened up the FX market significantly, giving greater power to non-bank financial institutions (NBFIs) in an ecosystem that had been characterised by bank-to-bank interactions.
Over the years, however, the introduction of tighter credit conditions and a dramatic increase in asset requirements, as well as an overall reluctance from some banks to trade with small- to mid-sized NBFIs, saw many of these institutions being effectively priced out of prime brokerage due to their inability to meet the necessary criteria.
FXCM Pro identified this emerging gap in the market and delivered a service aimed at small-to-medium sized NBFIs in the form of FXCM Prime. This acts as a neutral intermediary, providing direct FX market access with centralised clearing for small and medium sized funds, asset managers and HFTs.
This approach is embedded in our latest product – a central clearing solution that reduces counterparty risk, optimises capital and offers unrivalled market access and connectivity for contract for difference (CFD) instruments.
CFD Prime: a New Avenue for Growth and Transformation
FXCM Pro’s new CFD Prime service brings the netting, rollover fee, and margin benefits enjoyed in the FX market to those trading CFD products, something never-before-seen in the trading ecosystem.
We’re pioneering the next step in the evolution of the trading landscape through the introduction of prime brokerage access for CFD brokers, emerging market banks, small hedge funds and proprietary trading houses.
By using our balance sheet and battle-tested infrastructure, we can offer a true CFD prime brokerage solution where we can effectively connect both sides, providing a central clearing function, reducing counterparty risk, and offer capital optimisation to both makers and takers.
FXCM Pro is Levelling Up the CFD Trading Experience
The benefits to CFD Prime are numerous and extensive, providing an all-encompassing product that levels up the experience of those trading in CFDs on our platform.
By using our balance sheet and battle-tested infrastructure, FXCM offers a CFD prime brokerage solution which can effectively connect both sides, providing a central clearing function, reducing counterparty risk and offering capital optimisation to both makers and takers.
Our customers also benefit from FXCM’s real-time support which features CFD Prime dedicated coverage, account management and trading teams as well as real-time comprehensive portfolio, risk, performance and account reporting using FXCM’s well-established infrastructure. They can also make seamless transfers between FX and CFD prime brokerage accounts held at FXCM.
FXCM CFD Prime is underpinned by Integral’s market-leading trading technology that allows more market participants to connect and trade with the widest range of counterparties. By eliminating bilateral credit as a barrier to market, many can access core CFD liquidity more efficiently.
Client First – Trader Driven
We know that markets never sleep, nor do our fellow brokerage institutions underpinning the global trading ecosystem – and that’s why we can’t either. Embracing the industry-wide spirit of innovation and renewal, we pride ourselves on a customer-centric focus, aiming to constantly improve our platform to deliver a personalised service that offers greater automation and customised solutions than any of our competitors.
As one of the leading providers of online FX and CFD trading and other related services, FXCM has been a frequent innovator and, just like the rest of the industry, we’re not slowing down. This approach is embedded in the introduction of CFD Prime, which once again illustrates our “client first – trader driven” approach to cater for the unmet the needs of market participants.
This communication is intended for institutional and professional clients only. Trading Forex/CFDs on margin carries a high level of risk and may not be suitable for all investors.
Leverage can work against you. The products are intended for retail, professional and eligible counterparty clients. Retail clients who maintain account(s) with Forex Capital Markets Limited (“FXCM LTD”), could sustain a total loss of deposited funds but are not subject to subsequent payment obligations beyond the deposited funds but professional clients and eligible counterparty clients could sustain losses in excess of deposits. Prior to trading any products offered by FXCM LTD or other firms within the FXCM group of companies [collectively the “FXCM Group”], carefully consider your financial situation and experience level. If you decide to trade products offered by FXCM Australia Pty. Limited (“FXCM AU”) (AFSL 309763), you must read and understand the Financial Services Guide, Product Disclosure Statement, Target Market Determination and Terms of Business. Our FX and CFD prices are set by us, are not made on an Exchange and are not governed under the Financial Advisory and Intermediary Services Act. The FXCM Group may provide general commentary, which is not intended as investment advice and must not be construed as such. Seek advice from a separate financial advisor. The FXCM Group assumes no liability for errors, inaccuracies or omissions; does not warrant the accuracy, completeness of information, text, graphics, links or other items contained within these materials. Read and understand the Terms and Conditions on the FXCM Group’s websites prior to taking further action.