iFX EXPO Dubai: Equiti Capital Brokerage Sales Manager Shares Company Journey to Success
FinanceFeeds traveled to the United Arab Emirates last week to meet with industry leaders for the first time since the pandemic at the iFX EXPO Dubai. Being face to face again was a memorable experience that the participants will live with them for years to come.
The Equiti Group team, which represented the well-capitalized, multi-asset, financial trading brokerage firm with a unique operating structure, was among the main followers of the event.
Nikolai Isayev of FinanceFeeds spoke with Mohammad Isbeer, Global Head of Brokerage Sales at Equiti Capital, to learn more about the broker’s recent moves at a time of great change and challenges, from volatile markets to rise of emerging markets and asset classes.
Mr. Isbeer shared Equiti’s secret sauce of leveraging its unique local flair to better meet market demand for a more comprehensive range of financial investments and to expand its product offering and support services.
Be the first, be local
“From the start, we have always had this approach in mind: a global company with a local presence. It’s part of our business model, ”he said, as we discussed the high number of licenses from regulators around the world and their importance to the company’s business model. Equiti Group’s global presence includes local offices in Europe, the Americas, UK, Middle East, Levant, Africa and Asia-Pacific regions.
“We have a wide variety of licenses, from ‘usual suspects’ to emerging markets that really need help from an infrastructure perspective. When Jordan started issuing licenses, we were the first acquiring broker, ”said Isbeer, explaining that being a pioneer is part of the company’s DNA.
“After the success in Jordan, we were the first to engage regulators in Kenya. So when we started our operations there, we saw traders flocking to open accounts, ”he said of Equiti subsidiary EGM Securities, which has become the premier online brokerage in the world. Kenya to obtain a license from the Capital Markets Authority in early 2018.
EGM Securities recently launched derivatives trading on the Nairobi Securities Exchange (NSE) derivatives market; being the first online broker to offer these products in Kenya. Again, being the first is in their DNA.
The Kenya-based broker also offers in-person financial education at its Nairobi and Nakuru offices, along with other educational offerings such as regular seminars and free training webinars. “When you are local, it is the face to face that is important. This is our approach, to provide market support in the country, ”continued Mr. Isbeer.
Turning the topic to Equiti’s ability to provide broker clients with targeted and local solutions, payments to bank and custody, Mr. Isbeer explained that B2B solutions are primarily offered through his regulated entity. by FCA, Equiti Capital. Some B2B clients are also integrated into their other regulated entities. “Until now, the regulatory environment has not allowed us to do much on the B2B side with payment service providers.”
“On the B2B side, the main demand is for cryptocurrency deposits. Crypto solutions come with some risks, but we are trying to find the best possible way to serve our broker clients while respecting the regulatory framework, ”he said. “At this time, retail brokers deal directly with PSPs and it is their responsibility to make transfers to the respective bank accounts.”
Crypto payments are a big deal now, and Equiti Group is at the top of the game, but the current regulatory uncertainty around cryptocurrencies is hampering adoption.
“For now on the B2B side, Equiti relies more on lines of credit. We offer pre-approved emergency credit. It is a temporary solution. We don’t really like this, but it’s the only option at the moment as we hope to tackle crypto solutions for brokers in the coming months, where regulations allow, ”he said.
The global head of brokerage sales at Equiti Group also mentioned how heavily the company is invested in AI and machine learning through a partnership with Royal College London and its incubator, Algo Labs.
The products developed there with the help of professors and students have been developed primarily for its proprietary risk management and pricing engines, which directly benefit customers, but the company also intends to deploy more. ‘other innovations from brokers and improve their experience in the future.
Liquidity, pandemic and social trading
Dynamic adjustments to risk books and a smooth adaptation to brokers’ needs in terms of liquidity, lines of credit and trading limits have become a major concern of B2B clients since the pandemic.
Retail brokers like to internalize filling, and the pandemic-driven marketplace allowed everyone to hit their limit. “Even we as a liquidity provider have seen a lot of inbound fill,” Mr. Isbeer said of the “tough times” that were successfully dealt with.
“We pride ourselves on having ongoing communication with our clients: telling them about the changes happening in the market and the volatility we expect. In addition, we are adjusting our risk portfolio models.
“Our risk management team did a phenomenal job as he was always updating the risk to the economic calendar, monitoring vaccine rollouts and other pandemic-related news, as well as updating margins in anticipation of gold spikes and negative oil prices. All this while working from home. “
Equiti’s bespoke liquidity is offered through the FIX API of Tools for Brokers, Prime XM, oneZero Financial Systems and others, so broker clients can choose their liquidity providers from the widest range of options.
Mr. Isbeer emphasizes the importance of a customizable service with flexible connectivity. “It costs a few dollars per million but it’s definitely worth it” because Equiti uses two Prime Brokers and numerous liquidity providers.
Equiti recently deployed Lucera LumeFX technology, a leading effects aggregator known for its low latency execution and extensive connectivity to the forex market.
Recent partnerships with FXCubic and Your Bourse have also helped the company stay ahead of the curve in terms of best-in-class liquidity solutions and management systems at a time when price stability and liquidity may be the key. most important factor around the world.
As the interview drew to a close, Nikolai asked Mohammad Isbeer about his perspective on social commerce, its challenges and opportunities. “This is one of the most difficult stories of the last few years. The industry believed that big funds were the driving force behind the market, but now small traders are changing everything with simple tweets.
“The element of surprise was really important, so I highly doubt that will happen again, especially in the FX and metals space, although stocks are even more prone to it as liquidity on both sides is not. equal.”
“Brokers need to improve their game when it comes to the risk management team“He said, noting that Equiti offers a specific range of stocks, the most requested, but” the tendency is to offer as many products as possible “. So, “you have to have risk management and understand what is really going on in the market”. On the question of whether social commerce is here to stay: “the future is there. That will be the norm in about three to four years and we will all be used to it.
iFX EXPO Dubai was the industry’s first live event since the pandemic and reminded everyone how important and essential being face to face is for healthy relationships, networking, partnerships and business growth .