What do Chinese brokers look for in a liquidity provider?

The quality of companies which have achieved significant business in China, and those who are making serious attempts to gain presence in China is most certainly high these days.

Today, at the iFXEXPO Asia 2016 hosted by ConversionPros and Finance Magnates, Raymond Mok, Head of FX and Bullion Development, Sucden Financial (HK) Ltd spoke to Andrew Saks-McLeod to detail what type of brokerages seek liquidity solutions from high quality Western firms these days.

Mr. Mok began by explaining the background of Sucden Financial’s Asia Pacific business. “Sucden Financial HK Limited is licensed by the Securities and Futures Commission (SFC). We focus on B2B business and provide customised solutions to our clients. We have very stable platforms and can provide tailored solutions according to a broker’s need; therefore brokers stay with us through their growth period and beyond.”

“Here in Hong Kong, we have made a very good name for ourselves being a transparent liquidity provider” – Raymond Mok, Sucden Financial (HK) Ltd.

“Hong Kong attracts a lot of capital from all parts of the world, as it is seen as a reputable place to invest.”

“As a result of the more international nature of Hong Kong, we actually get a mix of competition, prospects and customers from the West, however we also get the same mix from China itself” said Mr. Mok.

Hong Kong as an institutional FX base

“Our focus in Hong Kong is on the institutions and the corporate side of things” said Mr. Mok. In China, there are a few private funds that would require access to trade FX outside of the mainland, and Hong Kong is the place where they look to find the liquidity channel.”

Being in Hong Kong, Mr. Mok understands that Sucden Financial HK is able to capitalize on this.

As far as the size of brokers that approach Sucden Financial HK for liquidity solutions in the Asia Pacific region is concerned, Mr. Mok explained that the firm looks for specific parameters when onboarding a brokerage as a corporate client.

“We do look for specifics. “Preferably, we like to see that the firm has a Hong Kong licence. There are a lot of large retail brokerages which by definition have vast client bases, both here and in mainland. We provide a prime-of-prime service with pricing and liquidity that aligns with these brokers” said Mr. Mok.
Bullion is very popular in Hong Kong, therefore keeping a good quality multi-asset solution accommodating both FX and bullion on one platform is important, a matter with which Mr. Mok concurs.

What’s new in Asia for Sucden?

Mr. Mok gave FinanceFeeds a brief summary of what the firm’s ethos is for the year ahead in the Asia Pacific region.

“As a group, we are constantly looking at new technologies and innovations and these are areas the company employs a lot of resources to stay ahead of the competition    “This year, we will be striving for even deeper liquidity, to help maintain the provision of favourable pricing and we will invest further in improvements in our systems, processes and most importantly our client relationships. These are the keys to a successful eFX business in China and Hong Kong.”