FOCUS
>>>
that couples ‘high-tech’ automated transaction processing with ‘high- touch’ account management and client service. Says Pla: “Offering one without the other renders the service incomplete. Large, sophisticated clients expect FX prime brokers to adapt elements of the service to the client’s existing business processes. In these cases, the PB service extends beyond just automated transaction processing to include business process consulting and re-engineering. With an increasing number of large, established buy side entities, the consulting and solution component of the service is taking on increasing importance.”
First and foremost, Pla believes that clients are eager to partner with their top liquidity providers. In addition, because FX prime brokerage quickly becomes an essential element of a client’s daily operational activities, clients are drawn to FX prime brokers with a demonstrated commitment to the business. “Tey want to be certain the service provider they select will be there for years, not months,” says Pla. “Indications of this commitment include investments in IT, client service, sales, legal, on-boarding and capital introduction. Tey also want to see geographic and client segment diversity as an indication a prime
broker is experienced and adaptable. More recently it has become clear that clients want to partner with firms who can offer a true cross-product approach to Prime Services, especially in the realm of OTC Clearing. Tey want a service provider who can ‘future proof’ them, as new and shifting regulatory requirements become a reality.”
While many regard FXPB and clearing as a purely operational service, and on most days, it is, Pla says that during periods of extreme market volatility, the variance associated with not knowing one’s risk is at its highest. “On these occasions, when maintaining access to liquidity and knowing one’s position at all times can literally make or break a business, FX prime brokerage behaves more like an insurance service. Insurance is a premium product one should buy based on quality and careful due diligence,” he adds.
Fundamental challenge Ed Pla
“
...it has become clear that clients want to partner with firms who can offer a true cross-product approach to
Prime Services, especially in the realm of OTC Clearing. Tey want a service provider who can ‘future proof ’ them, as new and shifting regulatory requirements become a reality.”
90 | april 2012 e-FOREX
For Pla, a prime broker’s fundamental challenge is to provide safety and convenience at a reasonable cost. It is an infrastructure business that requires constant attention and ongoing smart investment. UBS meets weekly to discuss its operational key performance indicators and evaluate new client needs and business process requests. Pla says: “We are constantly looking for ways to become faster, more efficient and more adaptable, based on a combination of our own performance indicators and feedback from clients. So we believe our core product development challenge,
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140 |
Page 141 |
Page 142 |
Page 143 |
Page 144 |
Page 145 |
Page 146 |
Page 147 |
Page 148 |
Page 149 |
Page 150 |
Page 151 |
Page 152 |
Page 153 |
Page 154 |
Page 155 |
Page 156 |
Page 157 |
Page 158 |
Page 159 |
Page 160 |
Page 161 |
Page 162 |
Page 163 |
Page 164 |
Page 165 |
Page 166 |
Page 167 |
Page 168 |
Page 169 |
Page 170 |
Page 171 |
Page 172 |
Page 173 |
Page 174 |
Page 175 |
Page 176 |
Page 177 |
Page 178 |
Page 179 |
Page 180 |
Page 181 |
Page 182 |
Page 183 |
Page 184 |
Page 185 |
Page 186 |
Page 187 |
Page 188 |
Page 189 |
Page 190 |
Page 191 |
Page 192 |
Page 193 |
Page 194 |
Page 195 |
Page 196