Standard Chartered fixed income brokerage set for 鈥榞reater growth鈥�
10 October 2019 London
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Standard Chartered鈥檚 new fixed income prime brokerage offering, connected to its own custody and repo financing capabilities, has proven popular with hedge funds, according to Andy Sterry, co-head of prime services at Standard Chartered.
Sterry said the number of customers using the service has doubled so far this year and the aim is to repeat that growth in 2020.
Commenting on the growth, Sterry explained: 鈥淓ssentially, we鈥檙e now able to offer a custody service with a financing facility on top. This means that clients can leverage our custody network, access segregated traders, utilise pre-agreed financing terms and benefit from a client solutions team to manage settlement processes.鈥�
He added: 鈥淔ixed income prime brokerage is the natural next step for the prime business and one which complements our existing prime services products as well as the bank鈥檚 commercial, corporate and institutional banking franchises.鈥�
Standard Chartered initially entered the prime space in 2014, focusing on servicing over-the-counter clearing demand, with foreign exchange and rates products added soon after.
The fixed income prime platform was launched in 2018 with a selection of buy-side clients.
James Barten, head of the new fixed income prime brokerage unit, described the product as 鈥渁 partnership between Standard Chartered鈥檚 prime services and securities services unit鈥�.
Barten said Standard Chartered鈥檚 clients are 鈥渇inding the idea of having a custody account linked in with a prime services account appealing, particularly due to the ease of switching assets between long custody and financing in an automated fashion鈥�.
He commented: 鈥淥n the custody side, the fixed income prime product is plugged into all our four custody hubs鈥擧ong Kong, Singapore, Dubai and Mauritius.鈥�
He added: 鈥淲e can replicate all of Standard Chartered鈥檚 offshore financing capabilities offered by the repo desk under fixed income prime brokerage. This combined approach means we can offer clients line by line financing down the credit curve, commercial haircuts, as well as broad access to collateral supply across the fixed income asset spectrum.鈥�
Sterry said the number of customers using the service has doubled so far this year and the aim is to repeat that growth in 2020.
Commenting on the growth, Sterry explained: 鈥淓ssentially, we鈥檙e now able to offer a custody service with a financing facility on top. This means that clients can leverage our custody network, access segregated traders, utilise pre-agreed financing terms and benefit from a client solutions team to manage settlement processes.鈥�
He added: 鈥淔ixed income prime brokerage is the natural next step for the prime business and one which complements our existing prime services products as well as the bank鈥檚 commercial, corporate and institutional banking franchises.鈥�
Standard Chartered initially entered the prime space in 2014, focusing on servicing over-the-counter clearing demand, with foreign exchange and rates products added soon after.
The fixed income prime platform was launched in 2018 with a selection of buy-side clients.
James Barten, head of the new fixed income prime brokerage unit, described the product as 鈥渁 partnership between Standard Chartered鈥檚 prime services and securities services unit鈥�.
Barten said Standard Chartered鈥檚 clients are 鈥渇inding the idea of having a custody account linked in with a prime services account appealing, particularly due to the ease of switching assets between long custody and financing in an automated fashion鈥�.
He commented: 鈥淥n the custody side, the fixed income prime product is plugged into all our four custody hubs鈥擧ong Kong, Singapore, Dubai and Mauritius.鈥�
He added: 鈥淲e can replicate all of Standard Chartered鈥檚 offshore financing capabilities offered by the repo desk under fixed income prime brokerage. This combined approach means we can offer clients line by line financing down the credit curve, commercial haircuts, as well as broad access to collateral supply across the fixed income asset spectrum.鈥�
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