Jefferies to Migrate FX Prime Brokerage Clients to Another Institution

Finance Magnates understands through an as yet unconfirmed report, that Jefferies Financial Group is migrating its forex prime brokerage clients to another institution through an Introducing Brokerage (IB) relationship.

The name of the institution to which it is transferring its FX prime brokerage business is, at this stage, yet to be confirmed. However, a source close to Jefferies said the US company is expected to reveal the details officially by the end of this week.

Finance Magnates has reached out to Jefferies for comment and will update the article with the firm’s response accordingly.

Jefferies operates from its headquarters in New York, along with offices in more than 30 cities around the world. It offers clients capital markets and financial advisory services, institutional brokerage, securities research, as well as wealth management, and asset management.

Exiting Prime Brokerage

The announcement of Jefferies shutting its prime brokerage division was first reported by Finance Magnates in March, citing unconfirmed sources. Two of the top FX Prime Brokerage executives at Jefferies, Brandon Mulvihill and Anthony Mazzarese left the company earlier this year to launch a cryptocurrency exchange, Crossover Markets.

“We are prioritizing the areas where we can best serve our clients with differentiated capabilities, and in doing so, we have decided to reduce our FX prime brokerage footprint,” a Jefferies spokesperson earlier told Bloomberg.

Additionally, earlier this year, the industry source highlighted that Jefferies already communicated to its clients about the plans to shut down the prime brokerage business. This prompted Jefferies’ prime brokerage clients to seek alternative clearing
Clearing

Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. This gives credit to the bank where funds are deposited and a corresponding debit to the account of the paying institution. The Federal Reserve operates a nationwide check-clearing system. Clearing also is used to signify matching buyers and sellers in stock, futures, and options transactions. Understanding ClearingToday, any type of payment can be cleared. A credit card payment is cleared through the payment merchant. It can be said that clearing is the settlement of balances and transactions. There is also an act of cleaning contracts and risk through A clearinghouse, like CME Clearing, which is an intermediary between buyers and sellers in the derivatives market. As the intermediary or counterparty, to every trade, CME Clearing acts as the buyer for every seller and the seller for every buyer for every transaction on an exchange. Stocks are cleared through global stock exchanges similar to the New York Stock Exchange (NYSE). The clearing is the process of updating the accounts of the trading parties and arranging for the transfer of money and securities.

Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. This gives credit to the bank where funds are deposited and a corresponding debit to the account of the paying institution. The Federal Reserve operates a nationwide check-clearing system. Clearing also is used to signify matching buyers and sellers in stock, futures, and options transactions. Understanding ClearingToday, any type of payment can be cleared. A credit card payment is cleared through the payment merchant. It can be said that clearing is the settlement of balances and transactions. There is also an act of cleaning contracts and risk through A clearinghouse, like CME Clearing, which is an intermediary between buyers and sellers in the derivatives market. As the intermediary or counterparty, to every trade, CME Clearing acts as the buyer for every seller and the seller for every buyer for every transaction on an exchange. Stocks are cleared through global stock exchanges similar to the New York Stock Exchange (NYSE). The clearing is the process of updating the accounts of the trading parties and arranging for the transfer of money and securities.
Read this Term options. So, it will be interesting to know how many clients Jefferies is left with to migrate to the other prime brokerage, which according to unofficial estimates is less than 10 percent.