ADS Securities’ award-winning Prime of Prime (PoP) product provides credit intermediation to clients who do not have an FX Prime Broker (PB), or need additional credit lines to access either ADS liquidity, or external liquidity, and execute anywhere in the market.

The SNB event in January 2015 changed the global FX Industry, leading to tier 1 banks reducing their credit and risk appetite. Faced with higher capital requirements, higher costs and a reduced profitability, many of these Tier 1 banks stopped providing FX-only prime brokerage services.

Finding a PB or accessing larger credit lines is becoming increasingly difficult. The ADS Securities PoP credit intermediation provides clients with the same service they would get if they were dealing directly with a PB. The client faces ADS and accesses trading lines which have been established with some of the leading Prime Brokers.

Principal trading is not the same as PoP. It offers substantial cost savings for clients who do not have a Prime Brokerage relationship, want to save on PB costs and require a credit facility- but this can only be executed against ADS liquidity.

Principal Trading Account – key benefits:

  • No brokerage nor PB fees
  • No small ticket fees
  • No minimum fees
  • Positions kept and rolled at ADSS
  • Fast set up for FIX and API trading
  • Presence in NY4, TY3, LD4 data-centres
  • Free pre-trade credit checking
  • Proprietary technology (no third party vendors/ECNs)

Principal trading is easier to access and more cost effective for many clients. It does not give direct access to external liquidity but benefits from ADS pricing, which already aggregates some of the best liquidity in the market from single banks, ECNs, non-bank market makers.

Our Prime of Prime (PoP) product is a credit facility for clients who do not have an FX Prime Broker or need additional credit lines to access external liquidity from either ADS or other Liquidity Providers (LPs). Clients can execute anywhere in the market, making it a ‘true’ PoP service. ADS’ high-level of capitalisation and its existing relationships with leading PBs allow it to offer a unique service, which includes:

  • Access to some of the largest NOP lines in the brokerage industry, owing to the company’s high level of capitalisation and track record
  • Ability to trade with your existing relationships including major ECNs, as well as selective new venues
  • Centralised notional credit facility, competitive intermediation fees and credit terms
  • Netting of all positions and risk across all LPs and venues
  • Spot FX and NDFs supported – out of LD4, NY4 and TY3
  • Aggregated pre-trade credit check across all venues
  • Quick Client on-Boarding
  • Online access to Risk and Portfolio portals to monitor overall positions by value date, position by LP and NOP, as well as real time equity and margin overview
  • Reporting on commissions, trade activity, collateral movements and EOD positions
  • Commissions debited in real time or invoiced in arrears after month-end

ADS Securities focuses on maintaining strong relationships with its clients as well as with its Prime Brokers and liquidity providers. Our capitalization and partnerships allow us to access some of the largest lines in the brokerage industry.

Through ADS’ PoP offering, clients can access over 40 different currency pairs and bullion types as well as leverage existing connections with a wide array of liquidity providers. Clients can leverage their existing relationships where they receive choice pricing or by developing new partnerships. The ADS PoP offering gives netting benefits across multiple venues with strong financial backing and that of Tier 1 PBs.

ADS Securities sits between the client and our PBs. The client’s credit facility is therefore entirely held by ADS. Our PoP is based on pre-trade credit check technology, one of the fastest of its kind on the market.

PoP Workflow
  • Tier 2 and Tier 3 Banks trading on PB’d ECNs
  • Local Banks needing credit & trading lines
  • Small to medium Hedge Funds, including start-ups
  • Family Offices
  • Institutional Brokers as a Credit “Top-Up”
  • Local Retail Brokers
  • Proprietary Trading Desks
  • High Frequency Traders (HFTs)

CLS Currencies Supported: AUD, CAD, CHF, DKK, EUR, GBP, HKD, ILS, JPY, MXN, NOK, NZD, SEK, SGD, USD, ZAR

Non-CLS Currencies Supported: AED, CNH, CZK, KWD, PLN, QAR, RON, RUB, SAR, THB, TRY

Other: HUF (not yet treated as CLS eligible by ADS’ PBs)

Spot: Yes
NDF: Available on a case-by-case basis
SWAPs: Available (Q4 2016)
Overnight Rolls: Yes

Sundays 22:00 GMT to Fridays 22:00 GMT

Sundays 22:00 GMT to Fridays 22:00 GMT
(Please check for Bank Holiday coverage)

For more information on pricing, please contact the PoP team. ADS charges a per million of notional traded PB fee on all external liquidity. Specifically, we would charge:

  • The agreed PB fee, eventually subject to volume discounts on all external liquidity

The client must also cover the following external fees, as applicable:

  • ECN/External Execution Fee
  • ADS as Maker Fee into the Client’s choice of aggregation platform

There is also a Minimal Monthly Commitment charge if the brokerage does not make full use of the allocated NOP facility, and a different pricing structure for clients who want Principal trading accounts.

For more information about ADS Securities Principal Trading and Prime of Prime accounts including pricing, which is based on flow requirements, credit history and liquidity requirements, please contact our PoP Team on:

ADS Securities London Limited is authorised and regulated in the UK by the Financial Conduct Authority (FRN 577453). It is registered as a company in England and Wales (number 07785265) and has its principal place of business at 9th Floor, 125 Old Broad Street, EC2N 1AR London, UK.

This product is for institutional and professional clients only.