Chart of the day

The PB process

Source: Concodanomics on Twitter

Prime brokerage (PB) allows clients to obtain liquidity from a broader range of dealers, while clearing, settling and executing trades through a single entity. The above model outlines the FX prime brokerage deal process at a high level. For example, the client sells a currency lot of the USD/JPY pair, before the executing dealer notifies the prime broker. The trade details are matched by the prime broker before inputting the trades.