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Abstract
Foreign exchange prime brokers have had a lot to contend with over the past year. The move towards central clearing and reporting for certain FX products has focused attention on prime brokers as the business through which banks can build over-the-counter clearing services, not only to comply with new regulations but also, eventually, to generate revenue. Through their pre-existing activities in the extension of credit to hedge funds, prime brokers have the best operational resources in place to build OTC clearing businesses for their clients. But central clearing is ultimately a risk mitigation tool, and JP Morgan wins this inaugural e-FX award for its clear recognition that risk management is just as important as operational expertise in an FX prime-brokerage business.