BCS Launches Synthetic Prime Brokerage Services

BCS Global Markets has launched a synthetic prime brokerage offering to provide its international client-base further access to the Russian markets.

The platform is designed to simplify the trading of Russian instruments and help to overcome geopolitical barriers such as regulatory and settlement issues. 

As Moscow Exchange-listed derivatives are unrecognized by the US Commodities Futures Trading Commission, the offering provides US-dollar denomination and enables global buy-side and sell-side institutions to access Russian equities and derivatives without the need for local settlement or registering of a ruble account.

Tim Bevan, global head of prime at BCS Global Markets and co-CEO of BCS UK, explains that the latest offering emerged as a natural extension to its brokerage services as it aims to expand its multi-asset coverage and fill a gap in the market for small to mid-tier institutional clients, particularly small hedge funds.

“The swap platform allows clients complete flexibility in terms of reset dates, event calendars, and reporting,” says Bevan. “It will enable multi-asset global trading, reduced to single swaps by currency. We are able to finance positions from our own balance sheet, via swaps with other institutions and other prime relationships giving us full flexibility and scalability in building a global product quickly.”

BCS is planning to build out the synthetic prime offering’s functionality to become multi-asset class, to broaden its services and extend its international footprint.

The service is currently live, but the firm will be adding international equity and derivatives, along with fixed-income and foreign-exchange capabilities next year.