The Financial24 Exchange has partnered with Standard Chartered Bank to offer a central prime broker clearing model that aims to lower margin costs for participants. Traditionally, FX prime brokers created a capital inflow through charging initial margins from their clients whilst they don’t post such margins to their execution brokers.
The exchange is an OTC platform backed by Fastmatch founder Dmitri Galinov, is going live today with its first product, the FX non-deliverable forwards (NDFs). The multi-asset venue claims to offer institutional market participants a more cost-effective way to trade FX NDFs through eliminating market data fees.
While the Bermuda-based electronic platform initially trades NDFs, other FX derivatives, including swaps and underlying currencies, could follow, as well as possible expansion into equities and fixed income.