Regional e-FX perspective on Latin America >>>
Deutsche’s Caio Blasco. “We are experiencing decent growth from those clients as it is a new asset class in this region. In the HFT space, there are few players, as the restricted nature of their main currencies make HFT challenging. At the same time we believe that prime brokerage is generally still under used in the region. Te cross margin ability and netting facilities that an FX prime broker can offer clients can make execution much smoother while requiring fewer margin allocated to different banks.”
Tis view is corroborated by Joseph Conlan Global Head of Sales at New York-based FC Stone LLC which provides clients with trading and execution services in a range of asset classes. “Prime brokerage is just gaining traction in the region, allowing participants to trade on the best rates market-wide, as opposed to being captive clients. HFT and algo trading will have an impact as more participants migrate to open markets and dark pools.”
Debra Lodge also notes that prime brokerage is significant growth area for HSBC, “Prime Brokerage services are beginning to emerge in Brazil, and we expect this business to become more prevalent with the local hedge fund community in the near future. HSBC is a large organisation with deep capabilities in a lot of geographies and products, we aim to be ready with such products as and when these emerging
Joe Conlan
“Prime brokerage is just gaining traction in the region, allowing participants to trade on the best rates market- wide, as opposed to being captive clients. HFT and algo
trading will have an impact as more participants migrate to open markets and dark pools.”
markets dictate.” Her colleague Jacqueline Liau global head of FX prime product and service adds, “We are already live and servicing clients in Brazil with our FX prime brokerage platform and continue to expand our base. Local knowledge has been paramount to ensuring our tools and technology are adequate for this market.”
Retail FX
If the smart money is just beginning to show an interest in LATAM and accessing it by electronic means, it is not surprising that the retail market seems to be relatively undeveloped as yet. Tis is also a market that brings with it some complexities.
“In much of Latin America the retail FX market is fed by remittances of emigrants, tourism and,
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