This page contains a Flash digital edition of a book.
“Anyone taking a White Label solution has to have confidence and one hundred percent trust in the relationship because of the reliance they have on the solution. You neither want the system or provider interfering with clients’ trades in any way. Today, firms have got the choice to go elsewhere if they are not completely happy with the solution or service,” warns Brewer.


And in his opinion, two factors that really matter in that security of service guarantee is a White Label provider that doesn’t take market positions and open themselves to trading risk and whose own operations transparently comply with both the detail and spirit of good governance. “We’ve seen it recently with brokers whose collapse has left companies who depended on them with seriously damaged business models.


While you might not want a company solely dependent on one marketplace, you certainly don’t want one running a big proprietary trading book when the risk goes against them,” argues Brewer.


Indeed another facet of many White Label products is that rather than simply putting the house brand on it, companies will allow co-branding, like Dukascopy Bank, which gives clients a further reassurance of corporate solidity.


Influence of traders


Te importance of transparency and governance is not lost on the clients of brokers either and this too influences what a White Label solution should provide. According to Vladimir Kisyov, a director at DF Markets, as retail traders have become more discerning, they’re also expecting a service that provides them with the tools to follow execution of trades and provide analysis of things like slippage. “So on the technical side, provision of straight through processing (STP) in a WL solution is fundamental,” he argues.


Jonathan Brewer


“In my view, when choosing a WL solution, liquidity is ultimately the most important factor a broker looks at.”


“Certainly the retail investor is taking a greater interest in the technology in as much as they want to know where their trades are going to be executed – if you click on buy, how is that message dealt with and executed? Is it auto hedged or is the White Label provider trading against your clients? says Brewer.


Te issue of regulation in a global context should also give prospective WL clients food for thought. “It’s very important that you have the deep pockets and skills to update the platforms and customise the solutions for the local market,” observes Filipowicz. “For example the Japanese FX market is very


38 | INSTITUTIONAL FX SERVICES - THE BROKERS HANDBOOK 2012/2013


Brokerage Operations


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