According to UBS Investment Bank, retail FX is growing at about 30% per year, helped by the rapid growth in affluent and high net worth individuals, especially in Asia, where retail FX margin trading is particularly popular. More and more of these "retail" clients are crossing into wholesale territory in terms of trade and position sizes. And studies by a retail aggregator show hardly any differences in trading styles between truly self-directed retail clients and professionals.
According to UBS Investment Bank, the challenge for banks is that retail FX requires:
- Highly efficient processes for client set-up, service and back-office
- Scalability of IT infrastructure
- The ability to make money from the flow, increasing risk management demands
As stated above, these retail clients now demand the same services as their wholesale counterparts. One of the main components that must be offered to them is a sophisticated netting and margining engine.
SS&C's MarginMan™ is the industry-standard solution for collateralized FX trading, precious metals trading, and over-the-counter (OTC) FX options trading. It provides configurable, customizable rules for multi-customer segments, allowing your bank to target the full spectrum of margin trading clients from retail, corporates and high net worth individuals to hedge funds and CTAs.
And SS&C provides a fast time to market with instant global deployment of a complete, ready-to-use FX margin trading risk system that can be easily integrated with your existing systems, particularly on-line streaming trading systems that are used to offer liquidity to the retail client base. Faster time to market increases your ability to reach and develop new market opportunities. To find out more about MarginMan, please contact Paraic Cosgrave.