There have been a number of high-profile exits from the foreign exchange (FX) prime brokerage market of late, including Morgan Stanley's withdrawal in 2013 and Rabobank's this year, as well as SEB’s announcement that it would not take on any new customers. But, at the same time, several noteworthy entrants have come to the fore, including Danish investment bank Saxo Bank, London brokerage firm CFH Clearing and UK-based FX trading firm Forex Capital Markets.
Overall, there have been more entries than exits, but the traditional model is changing so dramatically that it is not the case that the FX prime brokerage market is fragmenting, rather it is polarising.
