With Gary Gluck, Head of Fixed Income and FX Prime Brokerage at Credit Suisse First Boston. Carolyn Holt, Head of FX Prime Brokerage Sales - North America at JP Morgan. Andy Coyne, Head of FX Prime Brokerage at Deutsche Bank and Gil Mandelzis, CEO of Traiana as moderator.

Mandelzis: What are the key components of an effective Prime Brokerage solution and what gaps in your previous technology did you need to fill to serve this market?

GLUCK: The optimal FX Prime Brokerage solution provides the fund manager straight-through processing, rapid trade matching, transparency, enhanced MIS and position reporting. Pre-trade, the PB system should provide real-time credit line availability. At the time of trade, the PB system should interface with the managers deal capture system to eliminate the need for multiple inputs. Post-trade, the system should report deal matching status as well as real time reporting across positions. To this end, CSFB has made a significant investment in an architectural model which integrates Traiana into its cross-product infrastructure.

HOLT: Key components of an effective Prime Brokerage Solution include fast, effective communication with other dealers and clients, automated trade capture and matching, and enhanced reporting capabilities. Gaps in our previous technology and the state of marketplace did not support efficient communication between dealers. Even today interdealer trade notification is inefficient the market is rapidly moving towards closing this gap with the introduction of secure Prime Brokerage networks such as Harmony. As for more efficient communications with clients the internet allows JPMorgan to provide secure, reliable, on demand access to information from anywhere in the world anytime day or night information clients rely on to make trading decisions.

COYNE: Some three years ago, prior to selecting Traiana as a strategic partner for the first electronic FX Prime Brokerage offering, the market was completely manual. The technology has given us a quantum leap forwad and as a result the Prime Brokerage landscape is very different. Our system allows our staff to be much more effective so instead of booking trades they are monitoring for exceptions and focusing on the clients post-trade market risk exposure. The solution is a control mechanism that instills operational discipline. It also provides additional value through its reporting and filtering capabilities. With the launch of Harmony the market can now focus on the timeliness of executing broker give-ups reducing market risk exposure even further.

Mandelzis: How does an automated Prime Brokerage offering enable you to better meet the demands of your clients?

GLUCK: Automation of the Prime Brokerage processes has improved the speed at which trades are matched and reduced the instances of out trades. In addition, it has made the process much more efficient which has reduced processing costs and led to the compression in FXPB fees that we have seen over the past couple of years.

HOLT: Adding automation to our Prime Brokerage offering enables us to better meet the demands of our clients. Of most importance to clients, we have capitalized on the operational efficiency that we gain from automating the trade capture and trade matching process and have positioned our Client Service team to identify and address errors in a more timely manner.The flexible integration tools we use allow us to fully integrate directly with our clients in a matter of weeks.