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Morgan Stanley snaps up CFH for FXPB

Morgan Stanley signs key client amid aggressive build-out

Morgan Stanley continues to aggressively build market share in foreign exchange prime brokerage, signing CFH Markets as a client, officials tell FX Week.

The arrangement with Morgan Stanley allows London-based CFH Markets to extend interbank access to clients either through existing bank relationships or their own prime broker.

CFH Markets gives fund managers and financial institutions direct market access to wholesale liquidity through its FXPB or its clients’ FXPB (FX Week, September 21, 2009). The company also produces bespoke retail trading systems for companies looking to establish a retail strategy.

"We are pleased to bring on board Morgan Stanley as a prime broker," said Lars Holst, chief executive at CFH Markets in London, in a prepared statement. "In addition to complementing our no dealing desk/direct market access model, it allows us to be even more flexible on the liquidity side. We have a model that is optimal for any bank or broker that wants to build a retail FX business or make use of our fund manager solutions but we have realised that our clients demand more than superior technology solutions – they also want holistic liquidity solutions. The fact we have now added Morgan Stanley as a prime broker shows we continuously strive to be even more flexible when it comes to offering genuine interbank access and top-tier liquidity to our clients."

Martine Bond, head of FX prime brokerage at Morgan Stanley in London, said: "We are delighted CFH Markets has selected Morgan Stanley as its FX prime broker. This partnership reinforces our position as a leading FX prime brokerage provider, working with clients that have increasingly sophisticated requirements.”

More to follow in the February 22 issue of FX Week