Market counterparties such as prime brokers, clearers and ISDA counterparties are all important counterparties for trading strategies on the AMX platform. AMX manages and controls these counterparties for three key benefits for investors.
Firstly this helps manage pricing. AMX uses its scale to negotiate on behalf of its investors. A fund’s counterparty costs aren’t always included in the total expense ratio or TER of a fund and therefore it’s important for an investor to know firstly what those costs are and secondly how to manage them. AMX helps monitor the exposure to each of these counterparties on a daily basis AMX monitors how much exposure each fund has to each counterparty in order to monitor that and ensure investors aren’t taking a undue risk with counterparties.
The third key area is controlling the process of selecting market counterparties. A robust process managed by an experienced team selects each counterparty for every fund. Secondly the Board of Directors approves every counterparty for every fund.
If you’re an investor or a fund manager and would like to speak about your market counterparties, please get in touch.