Global Prime Journal
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Global Prime |
- Full listing profile: Global Prime broker profile
Is Global Prime safe?
- Investor protection: ...
- Regulation: ASIC Australia, VFSC Vanuatu
- Publicly traded: no
- Segregated account: yes
- Guaranteed Stop Loss: no
- Negative Balance Protection: no
Is Global Prime trusted?
- Information transparency: high
- Customer service: prompt, helpful
- Global Prime website: highly detailed, updated
- Global Prime popularity (by visitor count): average
How Global Prime works
Global Prime Pty Ltd (GP) is 100% owned by Gleneagle Securities Pty Ltd (GES) and hedges all trades on a 1:1 basis with GES. As such, this policy has been prepared with respect to both GP and GES (the “Group”), since GES facilitates the prime broker relationships which enable GP clients to execute their trades.
2. Market Risk Mitigation, Monitoring and Reporting
When a client executes a trade with GP, GP will execute a back to back trade with GES. GES will execute a similar trade with one of its hedge counterparties. For client trades below the markets minimum size, the trade will be accumulated with other sub-market size trades until the minimum size is attained and then executed with the GES hedge counterparty. Where a trade is below the market minimum, GES will hold that market risk until the minimum trade size is exceeded and then hedge that risk automatically. All GP trades above the respective market minimum trade sizes are executed via GES on a back to back basis with a GES hedge counterparty.
Each Global Prime Product which is agreed and entered into with you will be entered into by Global Prime as principal. Global Prime makes a market in its products since it regularly states the price at which it is prepared to deal with a client as principal.
Gleneagle Securities has no contractual or other legal relationship with you as holder of the Global Prime Products. Gleneagle Securities is not liable to you and you have no legal recourse against Gleneagle Securities (because Global Prime acts as principal to you and not as agent) nor can you require Global Prime to take action against Gleneagle Securities.
Conflicts: Trading with Global Prime for its Global Prime Products carries an automatic risk of actual conflicts of interests because Global Prime is acting as principal in its Global Prime Products with you and Global Prime sets the price of the Global Prime Products. Also, Global Prime’s only Hedge Counterparty is its related party, Gleneagle Securities.
The policy used by Global Prime is that as principal it issues the Global Prime Products to you based on the price it gives you, not by acting as broker to you. Global Prime obtains its price by dealing with its Hedge Counterparty. While Global Prime does not seek to make a market, its only Hedge Counterparty may do so.
3.8 Pricing Model (Gleneagle Securities Pty Ltd (GES)
You may only trade in and out of Global Prime FX Products by using Global Prime FX’s prices. Global Prime FX offers prices based on a market making pricing model where the price available to Global Prime FX is derived from its dealings with its Hedge Counterparties. Global Prime FX may hedge its exposure to clients with Global Prime FX Products at any time on or after the time it issues the Global Prime FX Products and may later change that at any time. Global Prime FX hedges with its Hedge Counterparty (not by placing orders directly into the market). Global Prime FX’s Hedge Counterparty takes the other side of the transaction it makes with Global Prime FX and it in turn may choose not to place its hedge contacts directly in the market or it might hedge directly into the market.
We trade with you as principal
When you trade with Global Prime, we execute your trades as principal since we issue the product to you, i.e. we are the financial services provider giving you the product.
This legal relationship does not mean your trade is not executed by one of the group's liquidity providers, it just means that Global Prime is the legal counterparty to your trade. This legal relationship will be the same wherever you trade unless the broker is an ‘agent’, i.e. They’re a middleman between you and the real broker, who you will trade with as principal. This is generally how OTC markets operate.
Global Prime cannot act as an agent between a trader and the market since this would require the trader to have a relationship with the prime broker, which they could not do without tens of millions of capital behind them. Global Prime can and does facilitate such arrangements for institutional traders that have their own prime broker. Who is the counterparty on your trades?
Global Prime is the legal counterparty to all of your trades. We are the financial services provider issuing the product to you and we are trading with you as principal.
Global Prime offsets 100% of its market risk with Gleneagle Securities Pty Ltd who in turn offsets most of this risk with its trading counterparties - banks, non-banks and ECNs. See the small trades section above for how small trades are executed.
Despite the fact that we are the counterparty to your trades, we are always able to demonstrate which liquidity provider filled your trades and this is the core difference between Global Prime’s ECN, STP, NDD business model and 99.99% of other brokers.
Is Global Prime really an ECN broker?
Global Prime aggregates liquidity from tier-1 banks, non-bank market makers and ECNs to give clients a competitive spread and deep liquidity over different market conditions.
Global Prime executes all trades on a back-to-back and 1:1 basis with its hedge counterparty (and group parent) Gleneagle Securities. Gleneagle Securities executes all trades on a back-to-back and 1:1 basis with its trade counterparties that exceed the interbank minimum. See Best Execution page for information on small trades.
Since we back-to-back hedge all trades and don’t internalise any risk (excluding small tickets which are batch hedged), plus we can prove exactly how every order was executed and with who, we’re confident we’re doing the right thing by our clients and delivering a genuine ‘retail broker ECN’.