Counterparty Implications

When MFM executes trades for a client with Mako’s UK market makers on the exchange, your side of the trade is passed back to your clearer and Mako’s UK market makers take their side. The counterparty risk or exposure to MFM is minimised, as the exchange’s clearing house sits between Mako’s UK market makers and yourself; hence the exchange’s clearing house is the counterparty to both sides of the trade. As it is in MFM’s interest to make sure that customer trades do not sit on its book, MFM endeavours to ensure that all trades are taken up promptly by your clearer.

Account enablement

MFM is the independent sales trading operation in the Mako Group of companies. It is regulated by the FSA. MFM is permitted to act for eligible counterparties and professional clients and cannot act on behalf of retail clients. Our standard documentation includes an MFM account opening form, terms of business and a give-up agreement. A give-up agreement is an agreement between MFM, its client and its client's clearer.

Before your first trade, you will have built a relationship with MFM's fixed income and/or equity sales team(s). MFM will have been sending you daily information and trade ideas, and will be in regular contact with you regarding market events and developments. If you know exactly what you would like to trade, you simply call us for a price. We speak directly to Mako’s UK market maker companies and give you a two-way price in the size that you need, either straight or against futures/stock as you wish. If you agree to do the trade, MFM will then execute on your behalf on the relevant exchange. The options and futures/stock are given up to your account at your clearing firm by MFM. MFM is also able to discuss trading ideas with you, and advise on fine-tuning a strategy to suit your needs.

For more detailed legal/compliance information please email enquiries@makoglobal.com