FNG Exclusive Interview… IS Prime gained significant attention when it launched its updated Index Swap offering, delivering spreads as tight as zero (choice) for clients of the ISAM Capital Markets Group. We spoke to Jonathan Brewer, Commercial Director of ISAM Capital Markets and Managing Partner at IS Prime to find out more.
FNG: Hi Jonathan. Can you explain more about your new Index and Commodity Liquidity Offering?
Jonathan: We believe that our new liquidity solution in indices and commodities is a game-changer in this industry. Retail brokers constantly battle over the best possible spreads in FX, however spreads in indices and commodities have largely remained fixed. The Group’s proprietary pricing protocol has broken this barrier.
We have really pushed boundaries by offering variable spreads in the major indices and US and UK crude starting from zero during liquid market hours. This aligns index and commodity products to price in a very similar way to FX pairs, resulting in significant cost benefits for clients of the ISAM Capital Markets Group.
FNG: How have you been able to deliver this?
Jonathan: ISAM Capital Markets has a dedicated team of quants experts who have created a proprietary pricing algorithm for our index swap products. These have been designed to help our retail broker clients improve their book-yield whilst offering more competitive spreads to their clients – a win-win.
This is a KEY point that many people have missed – we are not just creating another product offering, it is that our index swap products can have a very meaningful impact on our clients’ P&L.
Being part of a wider group and combining our knowledge of broker operations from the team at IS Risk Analytics with the systematic trading expertise of the quants team has enabled us to design a product which can be tailored to each and every client’s needs. We do not believe there is another provider in the market that has a product that even comes close to our true institutional-grade offering.
FNG: This product gives clients of the ISAM Capital Markets Group a significant competitive advantage. What has the response been from clients since your launch?
Jonathan: Feedback from clients has been strong – the switch across to the new setup was almost completely seamless and we have found this enables us to work more closely with our clients.
Customisation of our offering has always been the keystone of the Group and any update that enables us to further bespoke our setup is welcome.
For more information about IS Prime, please contact us.