IG Group to shake-up PB market with new consolidated services suite
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IG Group to shake-up PB market with new consolidated services suite 31 March 2020London Reporter: Drew Nicol
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Global online trading services provider IG Group is aiming to become the new challenger in the prime brokerage market with a revamped and consolidated offering aimed at start-up hedge funds and family offices.
IG has been active in the prime brokerage space since 2006 but has now brought its suite of services together under the banner of IG Prime.
IG Prime aims to offer a bespoke service to the typically under-serviced smaller buy-side members, which IG classifies as hedge funds and family offices with less than $200 million in assets under management.
Introducing brokers, asset managers, banks and broker are also potential clients of its new arm, IG says.
A spokesperson for IG tells SLT that IG Prime will benefit from the firm’s investments in its web-based trading and real-time reporting services, as well as boasting an expanded international sales coverage network.
“The mini-prime space is shrinking and the needs of major institutions are being served by the large prime brokerage houses,” the spokesperson explains. “There’s a segment in the market that needs a new challenger. We feel IG Prime can be a leader in the next evolutionary stage of the prime market.”
IG Prime has global resources across 16 countries providing clients with their own dedicated account management team covering business and technology processes, the firms says in a statement.
IG Group also confirms that further investment plans are already underway for new products and services to further bolster its prime brokerage offering over the next two years.
According to IG’s chief technology officer, Simon Myers, the firm’s trading platforms already process multi-million trades per month and provides access to more than 40 global financial markets.
"IG Prime will deliver efficiency for clients through its use of cutting-edge technology and product development,” says Max Hayden, global head of prime brokerage sales. “We can successfully compete because we will be cost-effective, whilst still offering clients deep and sophisticated trading access with a personal touch."
"Hedge fund clients are more focused on cost than ever as the industry has gone mainstream, but they still want the comfort of a secure well capitalised counterparty," he adds.
Fouad Bajjali, CEO IG Prime and IG Bank SA, adds: “Institutional clients have been calling for a new challenger, for some time, to enter the prime brokerage market and offer an innovative and competitive alternative to the incumbent providers.”
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