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Screenshot of a breaking news alert e-mail from Q2 2017
Wholesale solutions provider Advanced Markets Ltd has announced that it now provides a fully segregated triparty custody account for qualifying brokers and fund managers based in Asia, an important move at a time when many firms are considering the implications of consumer protection, and when establishing bank accounts for the purposes of holding client funds is no longer the simple task that it once was.
Advanced Markets has taken the step to offer this particular facility in the United States, enabling enables brokers and fund managers to open and maintain custody accounts in their name for their margin funds. The accounts are subject to a three-way account agreement, which enables Advanced Markets to perform daily pays and collects based strictly on the client’s trading gains and losses.
The account structure, which according to Advanced Markets provides an unparalleled level of client fund security, was originally developed and launched in the US by Advanced Markets, Macquarie Bank and Deutsche Bank National Trust Company in 2009. At the time it was necessary to enable large securities broker-dealer clients of Advanced Markets to do business with the firm when it was a lightly capitalized start-up operation.
“Our fully segregated triparty custody solution provides the highest level of fund security and control available,” said Anthony Brocco, Executive Chairman, Advanced Markets LLC. “We’re pleased to make it available locally to our clients in Hong Kong, China and throughout Asia.”
In addition to fully segregated triparty custody accounts, Advanced Markets offers “prime of prime” and multicurrency margin credit solutions to eligible clients. The firm provides prime of prime services through its prime brokers Citi and Deutsche Bank.
With many clients in the Asia Pacific region keen to do business with reputable and secure Western companies, and Tier 1 banks increasingly reluctant to operate client accounts for retail FX firms in many jurisdictions which are populous with FX brokerages, this can be considered a shrewd move by Advanced Markets.