The company operates on a 100% A-book model, hedging all client positions on external counterparties. The company is not interested in the client's losses, as it earns only from the commission paid by the client for the transactions.
The company operates on a 100% A-book model, hedging all client positions on external counterparties.
In the case of the B-book and mixed model, the company acts as a counterparty to the client's transactions, the client's earnings become the company's losses, and vice versa.
The A-book model scheme completely eliminates a conflict of interest between the company and its clients, because the company
does not act as a counterparty to customer transactions and is not interested in their losses.
In the case of work under the B-book and mixed model, the company bears additional risks, as it acts as a counterparty
on the client's transactions, the client's earnings become the company's losses, and vice versa.
This reason led to the bankruptcy of quite a number of companies, due to too high earnings of clients
in a short period of time.
Mulligan IB does not bear these risks of bankruptcy, as it does not act as a counterparty to the transactions of customers.