So, NatWest Markets’ prime brokerage (PB) is really making waves over in Asia-Pacific (Apac). The solutions they’ve got going on are super versatile and cater to a whole bunch of different market players.
Jade Foo, who heads up things for NatWest in Apac, mentioned that the PB business in the region saw some serious growth in 2024. Apparently, they hit their highest trading volumes in a single day ever. Some of this was because of all the ups and downs in the Japanese market, but also because more and more market folks are digging the accommodating PB solutions that NatWest has cooked up for them.
Seems like NatWest has been spending some time fine-tuning their operational flows to suit high-frequency clients. And it totally paid off during those crazy volatile market days. They managed to handle near-record volumes day after day without any pesky system delays getting in the way of their clients.
NatWest has a rep for coming up with tailor-made PB solutions that really hit the spot. Their approach to customizing solutions for different market players has been a hit in Asia. Considering the crazy diverse client base they’ve got in the region—from big retail brokers in Japan to prime-of-primes in Australia—it makes sense that they need solutions that can adapt to all sorts of needs.
Marcus Butt, who’s the big cheese of prime services at NatWest, pointed out that their focus on client-specific solutions is what sets them apart from the competition. They take the time to really get what their clients need and then come up with new ideas to match. Right now, they’ve got at least half a dozen different PB models on the go, all with their own unique setups. This kind of variety is especially appreciated in Apac.
NatWest’s PB game plan is pretty straightforward: they run things on an agency execution model. Even if some parts of their PB solutions overlap, the nitty-gritty details are totally different. In Apac, they’ve got an eye on small and medium-sized firms, considering their unique operational constraints based on size and local market trends.
Butt mentioned that even though their clients in Asia are all different, they’re all down to try out new and fancy PB solutions. One cool service they offer is a way for businesses under the same umbrella to share liquidity and hedging without needing new credit lines. This setup works great for big Japanese retail brokers, who are a key client base for NatWest in Asia.
Another nifty service they’ve got for the region is a cross-margining solution that lets clients offset their overall position between OTC FX positions traded through NatWest and FX futures at a specific futures commission merchant (FCM).
I mean, who knew that a bank could get so creative with PB solutions? NatWest really went all out to meet their clients’ needs with this one. They set up a tri-party framework with external FCMs, acting like a single legal entity to make things run smoothly.
The futures-versus-cash FX concept was such a hit that they expanded it to cover positions between different PBs. Butt explained how having relationships with multiple PBs can be a smart move for clients looking to manage risks. But it can also be a pain because they have to juggle positions to meet margin requirements.
Butt and the NatWest crew came up with a model similar to the futures-versus-cash setup that works between two FX PBs. This leads to big savings in margin and operations.
The talks between NatWest, their clients, and the PB solutions they cooked up really show off their knack for thinking outside the box.
NatWest even snagged the title of Best FX prime broker for Asia at the FX Markets Asia Awards 2025. Looks like their hard work and innovative solutions are really paying off.
