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      IS Prime Offers Negative Balance Guarantees in Response to ESMA

      Published: just now

      IS Prime Offers Negative Balance Guarantees in Response to ESMA

      24 July 2018 – IS Prime, part of ISAM Capital Markets, has announced it will offer negative balance guarantees on a case by case basis. The FCA regulated Prime of Prime brokerage has developed this offering following requests from new and existing clients in response to ESMA, which comes into force on 1 August 2018.

      Jonathan Brewer, Managing Partner, IS Prime explains, “With the impending ESMA changes brokers will have to offer their retail clients negative balance protection. This has led to new risk factors for retail brokers to consider and is creating a certain level of panic in the industry.

      “We are increasingly seeing, particularly from the plethora of start-ups across Europe, that many brokers do not have the regulatory capital available or the appetite, knowledge or expertise to manage this risk. IS Prime, as a premium wholesale service provider in this industry, is able to manage and control these risks, leveraging the ISAM Capital Markets group, and as such can pass this expertise onto our clients. In response to client demand, we have agreed that, under the right commercial framework, we will offer brokers a negative balance guarantee down to an individual retail client level.”

      IS Prime provides institutional clients with multi-asset execution across Tier 1 aggregated liquidity venues together with Prime Brokerage services and cutting edge front to back technology. The London-based firm is part of ISAM Capital Markets, which also includes IS Prime Hong Kong and IS Risk Analytics.

      For further information about IS Prime, please visit www.isprimefx.com

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