Beijing, China. China is at the moment the world’s second-largest financial system and presents ATFX Connect with an thrilling alternative to develop its institutional enterprise
Author: Ergin Erdemir, Head of Marketing, ATFX
February 7, 2020
The retail buying and selling market and the institutional buying and selling market are completely different in quite a few methods. While retail merchants purchase or promote securities for private accounts, institutional merchants purchase and promote for a gaggle or company that they’re managing. Costs can differ for the 2 types of buying and selling, and institutional merchants might discover that they’ve entry to investments that aren’t out there to retail merchants, corresponding to swaps and forwards.
The variations between the 2 markets imply it may be troublesome for brokers to transition between them. At ATFX, nonetheless, this hasn’t been the case. As a globally established firm with 14 workplaces worldwide, our expertise throughout quite a few markets has supplied us with a breadth of data that allows us to adapt no matter whether or not our purchasers come from retail or institutional spheres.
ATFX Connect desires to be the bridge between prospects and an financial system that continues to develop
We plan to develop even further throughout 2020, specializing in a number of rising market areas as a part of our world technique to improve our footprint as each a retail and institutional dealer. ATFX is already recognised amongst essential regulators, together with the UK’s Financial Conduct Authority and the Cyprus Securities and Exchange Commission, and we plan to obtain regulatory approval in a number of different markets within the close to future.
We have not too long ago opened our new London-based institutional arm, ATFX Connect. This fintech enterprise is about to launch a contract for distinction (CFD) bundle, whereby the vendor agrees to pay the customer the distinction between an asset’s present worth and its worth on the time stipulated within the contract. With this new bundle, we hope to set ourselves aside from the competitors, as our purchasers can be ready to move their CFD pricing on to their very own purchasers by way of an trade knowledge resolution.
Another means we differentiate ourselves from different gamers available in the market is by assembly our purchasers’ robust demand for monetary training. This has turn out to be a core a part of the corporate’s providing. ATFX desires to make sure that all its purchasers absolutely perceive the fundamentals of buying and selling and the dangers concerned with getting into new monetary markets.
China is at the moment the world’s second-largest financial system and presents ATFX Connect with an thrilling alternative to develop its institutional enterprise. Recently, the Chinese Government thought-about opening up the interbank international trade market to embrace non-bank monetary establishments; we consider it will drive enormous demand from retail and institutional brokers, domestically and on a world scale.
The firm sees the potential to accomplice with rich, long-term traders which can be trying for an skilled monetary establishment providing a excessive stage of regulation so as to safeguard their wealth. As our title suggests, ATFX Connect desires to be the bridge between prospects and an increasing financial system. There may also be growth within the spending energy of high-net-worth people (HNWIs) within the area – that is who the corporate’s bespoke providers are geared toward, together with asset managers, regional banks, household workplaces and different brokers.
Considering the anticipated spending from this demographic, paired with middle-class consumerism, we see that sectors corresponding to healthcare, journey and leisure will play an element in driving the area’s financial growth, presenting us with an atmosphere by which to nurture and improve our providing. Another alternative lies with the rising variety of brokers in Asia – particularly in Hong Kong, South Korea, Japan, Singapore and Indonesia. We are assured that our liquidity options will meet their wants.
Asia can also be recognised for its innovation, infrastructure and know-how, and these key sectors mirror our ambitions and targets as a newly developed institutional dealer. ATFX Connect’s head of operations, Matthew Porter, and senior gross sales head, Marc Taylor, have each participated in a media tour round South-East Asia so as to drum up curiosity in our options. The tour has been a testomony to the relationships we have now constructed with completely different media homes, in addition to different professionals within the institutional sector. Porter and Taylor mentioned subjects together with the know-how powering our institutional platform and the investments behind our product choices, offering perception into what next-generation execution providers will seem like.
A problem valued at tackling
The rising rigidity between the US and China has led to drastic declines for some Asian shares. At the start of October 2019, Japan’s Nikkei 225 dropped by 0.eight p.c, whereas Hong Kong’s Hang Seng Index fell by 0.three p.c and China’s SSE Composite Index by 0.1 p.c. Beijing began printing financial knowledge in 1992 and within the time since, the nation has by no means had financial growth as sluggish as that being recorded now (see Fig 1). China’s Q3 2019 growth recorded simply six p.c. With the financial system underneath this kind of stress, it stays to be seen whether or not now’s the fitting time to launch an institutional buying and selling arm within the nation.
Nevertheless, there’s a lot to be enthusiastic about within the Chinese market – notably the rising variety of HNWIs. Real property costs and the inventory market seem to be the 2 major automobiles driving private capital appreciation for HNWIs in China. Catering for HNWIs on this area is usually thought-about difficult by western institutional brokers getting into the market, as they’re a demographic recognized to observe particular guidelines of enterprise etiquette, formed by conventional cultural practices.
As such, we have now positioned ourselves because the logical subsequent step for China’s high-net-worth inhabitants. We have tailor-made our providers to meet the calls for of HNWIs, in addition to asset managers, household workplaces and different brokers. We perceive that wealth obtained by establishments and HNWIs should be rigorously monitored, so threat administration is and at all times can be a precedence. ATFX Connect’s threat administration resolution permits the person to seize threat, view open positions and trades, and monitor fairness in actual time.
We delight ourselves on being a part of the AT Global Markets group, which has established a world presence. By combining this community with our institutions within the Far East, we plan to ease our transition from a retail-only dealer to a quickly increasing fintech firm with the potential to facilitate and accomplice with a variety of numerous purchasers by way of our new multi-access platform.
Having efficiently opened our institutional division in London, the subsequent step for our workforce was to head to South-East Asia to focus on future plans within the area. They visited Shanghai, Hong Kong, Taipei and Malaysia – all economies the place the corporate sees enormous growth potential that can appeal to further funding from native and world companies.
Looking to the long run, the corporate not too long ago arrange its bespoke digital platform, via which the fintech arm of the enterprise can supply Tier 1 financial institution and non-bank liquidity options, aggressive spreads, low latency and multi-platform entry. We proceed to put money into know-how and infrastructure, and we’re at the moment specializing in methods to improve our personal aggregator and bridge. Through our versatile, client-centric strategy, we would like to turn out to be the principle institutional dealer in China. Additionally, we would like to develop to the Middle East and different areas in Asia sooner or later.
Latin America has additionally seen a marked improve in multinational cross-border exercise lately, each when it comes to financing and enterprise. There is now a rising demand from HNWIs stylish within the area to commerce monetary merchandise. With AT Global Markets opening an workplace in Mexico, we can be ready to work with purchasers in Latin America, guaranteeing they’ve the possibility to take part in worldwide markets and currencies by way of our multi-access platform. Whether in Asia, Latin America, Europe or elsewhere, ATFX Connect will proceed to ship the absolute best providers to our purchasers so that each one their buying and selling calls for are met.