ClientKnowledge has written this paper to address the interest in retail FX. For those banks that have decided to examine the potential, this paper provides a guide as to the key issues, in particular, examining those around white-labeling. We have used our breadth of experience to consider what sell-sides should attend to in reviewing potential white-label partners.

- this represents ~2% of daily FX volume

Demand for retail FX is recognized as a potential gap in some banks' coverage models

- banks perceive the opportunity, but specific momentum to capitalize on it is rare

Independent retail FX platforms have established a credible, competitive market outside the reach of bank's wholesale, retail and wealth management divisions

- the existing platforms have developed an array of experience in a short space of time

- leveraging off an existing platform is the accelerated route to growth

Due diligence will be a vital factor in the process

- detailed understanding of client handling will be necessary

- reputation risk needs to be minimized by ensuring any retail partner is credible and compatible

Both retail firms and banks need to move quickly to assess the opportunity

- there is a lack of detailed knowledge on both sides regarding which retail firms are credible and which banks are likely partners/acquirers.

Please click here to view Retail FX: Understanding the trend; leveraging the opportunity