Saul Knapp on Broker Risk: Gold Concentration, Liquidity…
By Rick Steves
AI summary of the source article
MAS Markets Chief Risk Officer Saul Knapp outlined the brokerage's approach to risk management, liquidity provider due diligence, and flow internalization. The firm holds a strategic equity stake in Solid FX and divides hedges across multiple counterparties to prevent concentration risk.
Why it matters
MAS Markets divides its flow and hedges between counterparties to "ensure that we’re not concentrated to one" and ensure it is "never susceptible to one person’s downfall or one company’s downfall."
Key facts
- MAS Markets holds a strategic equity stake in Solid FX to connect its margin business with institutional spot-FX and agency capabilities.
- MAS Markets splits its hedges and flow across multiple counterparties rather than relying on a single provider.
- Knapp noted that many brokers he speaks with internalize between 60% and 99% of their flow.
Source excerpt · FinanceFeeds
In an exclusive FinanceFeeds video interview with Editor-in-Chief Nikolai Isayev, MAS Markets Chief Risk Officer Saul Knapp explored the operational decisions behind brokerage risk: which liquidity providers to trust, how much flow to internalize, when to change client terms and what continuous trading could mean for infrastructure. The discussion also covered MAS Markets’ growth plans and its rel…