Marex and NatWest have announced a new cross-margining arrangement that enables FX clients to reduce collateral requirements by linking futures and prime brokerage positions. The initiative targets institutions that use Marex for FX futures and NatWest for FX prime brokerage, promising a margin relief through a coordinated service.
Margin Offset for FX Prime Brokerage
“We are excited to be cooperating with NatWest, providing our clients with access to a margin offset for their FX prime brokerage services, complementing our own Prime services offering,” commented Terry Hollingsworth, the Global Head of Futures & OTC Clearing Sales, Marex.
The collaboration aims to improve capital efficiency for clients without requiring them to consolidate providers. Both firms say the solution supports clients who maintain separate relationships for clearing and prime brokerage but seek to avoid double margining.
The service is expected to appeal to institutions active in both listed and OTC FX markets, particularly those seeking to optimise collateral usage in a fragmented trading environment. Both firms indicated the move expands their offerings and enhances competitiveness in a capital-sensitive market.
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“Clients have their preferred providers for specific services and this solution allows them to benefit from collateral optimization while maintaining their existing relationships,” Added Marcus Butt, the Global Head of Prime Services, NatWest.
Other Recent Collaborations
Meanwhile, early this year, CME Group and the Depository Trust & Clearing Corporation also announced plans to extend their long-running cross-margining arrangement to include end-user clients by December 2025.
According to the announcement, the move will reduce capital costs and increase efficiency for participants active in both U.S. Treasury cash markets and CME Group interest rate futures.
The expanded program aims to allow eligible end-user clients of CME Group and the Fixed Income Clearing Corporation’s Government Securities Division to offset margin requirements when trading products with similar risk profiles.
Elsewhere, Marex Group agreed to acquire Agrinvest Commodities, a Brazilian firm active in the physical corn and soybean markets. The deal aimed to expand Marex’s physical commodity operations in one of the world’s key food-producing regions.
It reportedly brings the London-based financial services group deeper into Brazil’s agriculture sector. Agrinvest acts as an intermediary in physical grain trading and advises clients on hedging and commercial strategies.
This article was written by Jared Kirui at www.financemagnates.com.Institutional FXRead More
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