Over the last 5 years the investment banking services of Central Europe have experienced quite a shakeup; some might even call it decimation. Closures and mergers in the banking sector and a tighter credit profile have decreased liquidity and price discovery across a wide value chain of market products. Stable and conservative institutions have withdrawn their outposts, making a conscious effort to focus on home or at least, “known”, market locations. And the pace of services growth, especially to nascent markets, has slowed to a crawl.
And yet the needs of investors, purveyors of capital, and commodity traders in these Central to Eastern markets, was still in existence, albeit with fluctuating demand.
Entering into this space like water taking the shape of its surroundings, is 42 Financial Services, a market intermediary broking services to the investment community, offering their professional client base anonymity, competitive execution and liquidity in a range of financial instruments focused across the CEE region.
Products provided for the Czech and Slovak interbank market include Fixed Income, Deposits, Interest Rate Derivatives, FX and swaps from local currencies to all major currencies. In Power and Natural Gas, 42 Financial Services is actively expanding: currently they have a loyal customer base for a large portion Czech and Slovak grids and in Gas they are active in the Czech VOB, the Austrian VTP, and German hubs, with eyes on the other CEE markets.
Operating an anonymous Inter Dealer Broking service from Prague and servicing an array of neighbouring markets, gives 42 Financial Services an advantage because local service providers often win out over UK and German competitors due to distance and cultural anomalies.
Aside from 42 Financial Services forte for an in-depth understanding of the regional marketplace, the company is made up of polyglots who strive for new market positioning. Ideas for growth are fostered: R&D is big. And with a lean operating structure, bureaucracy is non-existent and communication lines are always open. The in-house environment is eclectic and fun; staff turnover is low perhaps giving credit to open mode of management.
It seems clear that like the progress since its inception, 42 Financial Services will continue to grow along with the resurgence of the neighbouring financial and energy markets.
42 Financial Service is indeed ambitious, but certainly continues to fulfil its internal mandate to provide quality service specific to the region.