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?
FOCUS : FORUM: Technology- helping to meet the needs of clients
Gil MandelzisCEO of Traiana
In this months FORUM, Gil Mandelzis asks 3 major banks about the
key components of an effective Prime Brokerage solution, and future
trends of the market.
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.
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
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?
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.
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.
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