Matching top IBs to your brokerage: FinanceFeeds China hosts 50 senior level IBs in exclusive symposium in Shanghai

An exclusive audience of top level Chinese IBs were hosted by FinanceFeeds this weekend in Shanghai. Here is the full report

In all sectors of the OTC derivatives industry, China is at the center of the agenda, it being home to the most structured and largest B2B electronic trading environment in the world, by a very long way.

Vast networks of introducing brokers operate in China, and with FinanceFeeds being the only international FX news and research company to have a comprehensive commercial presence in the People’s Republic, FinanceFeeds China, our extensive relationships among China’s industry leaders on a national basis is a unique value that we are committed to bringing to the FX industry’s higher level firms.

This weekend, FinanceFeeds hosted a bespoke IB Symposium in Shanghai, China’s most important FX industry center for the most critical B2B retail FX region in the world.

IBs in China are instrumental to the industry’s sustainability globally. They are large, well-staffed companies that offer portfolio management, automated trading and asset distribution services to high net worth investors across the second tier development towns and large financial centers of China, the most important region for the retail FX industry in the world.

FinanceFeeds has specialized in researching the FX industry’s continually evolving landscape and business ethos across mainland China for several years, and has built substantial relationships with large introducing brokers that in many cases have in excess of $300 million in assets under management, and whose requirements for execution are to place business with reputable brokerages in well-regulated jurisdictions in Western countries.

Yesterday at the Shanghai Vista Hotel, FinanceFeeds hosted senior executives of large IBs in the region, alongside prominent retail FX brokerage easyMarkets led by Echo Geng, CEO of FinanceFeeds China.

easyMarkets is one particular company that fully understands the requirements of introducing brokers, as well as retail traders, as the company was one of the very first Western household names to actually establish operations in mainland China and successfully cater toward a large and loyal customer base.

Sun Yu, easyMarkets’ Chief Dealer, presented to the discerning introducing brokers, explaining some very important matters regarding the retail FX market globally, as well as on a local scale in mainland China.

Commencing his comprehensive presentation, Mr Yu focused on major facets that are important to FX industry professionals in China, including risk management, especially during periods of volatility, and transparency.

Reviewing the market structure in China, Mr Yu explained easyMarkets’ approach to risk, demonstrating that during the period after which the Swiss National Bank removed the EURCHF peg in 2015, the company honored every stop loss that was entered by all clients, hence having not exposed them to negative balances.

Additionally, Mr Yu, as part of his detailed insight into the importance of sensible leverage limits and secure custodianship of client assets, explained the company’s dealCancellation solution, which is a feature to allow retail traders to pull out of or cancel trades even if a position has been opened without loss to capital whatsoever.

easyMarkets senior executive Nicolas Shamtanis pioneered this product, explaining at its launch that as far as functionality is concerned, dealCancellation is effectively an option connected to the deal itself, therefore when a trader buys a spot deal, he is also buying an option to hedge the downside, in exchange for the cost of the premium. The premium is calculated based on market volatility.

“With regard to implementation to the trading environment, Mr. Shamtanis explained comprehensively how traders can pull out of open positions with no loss “When a trader enters his trade details on the platform, he can choose to activate dealCancellation from the get-go, which means that he already has the option to cancel this trade as though it never happened in the first place. Of course this comes at a small fee based on market conditions, which is usually less than the loss that might be incurred if the trade hits its stop. This way, the trader may minimize his losses to the cost of the dealCancellation feature versus the full loss on the trade” he said.

In China, where trust and the relationship between broker and IB is critical due to the ‘closed’ nature of information within the mainland, and the responsibility that IBs have toward their clients’ portfolios, this is an important means of ensuring a good safety net should a firm wish not to proceed with a particular trade.

One of the most divisive practices in the FX business these days is the banks’ privileged ability to pull out of or cancel trades that are not going in their favor, whilst all other participants from PBs to ECNs cannot do so. easyMarkets’ dealCancellation solution emulates the execution privileges often reserved for Tier 1 banks only, this having been very well received yesterday in Shanghai.

Here is a full montage of today’s event, where important long term relationships are generated.

  • Read this next

    Retail FX

    Weekly Roundup: FX prop firms switch to cTrader, who moved $1.35B BTC?

    The foreign exchange and cryptocurrency markets are always active, and this past week was no exception. Stay ahead with a selection of essential stories and updates that matter most to market participants.

    Digital Assets

    Bitcoin breaks all records with a massive $1.347 billion transaction

    This transaction has surpassed previous records, setting a new benchmark for Bitcoin trades. Before this event, the largest Bitcoin transactions included a $1.1 billion trade in April 2020 involving 161,500 BTC, and other significant transactions ranging from $491 million to $1.033 billion throughout 2019 and 2020.

    Digital Assets

    Uniswap debuts Ethereum ‘uni.eth’ subdomains

    Decentralized exchange platform Uniswap has integrated Ethereum Name Service (ENS), allowing users to create human-readable domain names and cryptocurrency wallet addresses using .eth endings.


    Magic Square Expands with TruePNL Acquisition

    Binance’s web3 app store, Magic Square, acquired token platform TruePNL in a cash deal this week for an undisclosed sum. The deal brings TruePNL’s infrastructure (excluding branding & token) under Magic Square’s wing. Initially seeking a partnership, Magic Square opted for a full acquisition.

    Crypto Insider

    The Future of Prediction Markets? Zeitgeist Launches Decentralized Court System

    Polkadot-powered prediction market protocol Zeitgeist has announced the launch of its latest innovation: a decentralized court system.

    Digital Assets

    Crypto exchange Kraken fires back at SEC lawsuit, claiming overreach

    Crypto exchange Kraken is pushing back against the U.S. Securities and Exchange Commission (SEC), seeking to toss out a lawsuit that accused the platform of operating without proper registration.

    Industry News

    Exness Named a Best Place to Work in 2024

     Global leader Exness, tops in retail trading volume, earns 2024 “Best Place to Work” award, cementing its employee-centric culture after three prior years of winning the Cyprus national title.

    Digital Assets

    Swan Bitcoin taps Bakkt for crypto offering in the US

    “We are thrilled to be taking this exciting step forward in our partnership with Swan. This is just the beginning of our collaboration, as we intend to explore further growth opportunities together in the future, including expansion into international markets.”

    Digital Assets

    Polkadot Awards Bifrost a 500,000 DOT Loan to Enhance Liquid Staking Adoption

    Bifrost, a leader in liquid staking solutions, has secured a 500,000 DOT loan from Polkadot’s treasury to expand the reach and utility of its vDOT product within the ecosystem.