I assume post-crisis, post Lehman collapse, most small to mid size and large (too) hedge funds now use more than one prime brokerage to help reduce exposure, true? In Europe, I believe MiFiD would also be interpreted as ruling that HFs need to spread brokerage risk? So is this opening up the market for increased competition among prime brokers?

Not from personal experience, but I believe most large HF already used several Prime Brokers. The competition comes when Prime Brokers try to give a HF a better deal so that they will get more of the HF volume and make up the money they lost by cutting them a deal. HF usually have one primary Prime Broker, but also use others. Also, yes some prime brokerages collapsed, but so did a few thousand HF. Brokerage has always been an area of increased competition (especially during the HF boom), I'm not sure much will/has changed.....Someone correct me if I'm wrong

Increased competition in prime broker bus for HFs?

Gekko21

14y

Best Response

Libero ipsum consequatur ut voluptatibus veritatis unde ut. Aspernatur earum iure dignissimos molestiae illum fuga. Reiciendis eius consequatur soluta quaerat. Odit et atque ut fugiat voluptates.

Quote

Report

Other

"Greed, in all of its forms; greed for life, for money, for love, for knowledge has marked the upward surge of mankind. And greed, you mark my words, will not only save Teldar Paper, but that other malfunctioning corporation called the USA."

+37	Background check issues	HF	6	2d
+26	Tell Me I'm Crazy: I Want to Start My Own Financial Advisory Firm	HF	5	12h
+21	How to learn more about Cyclicals?	HF	6	4d
+20	London HFs	HF	6	13h
+19	How to approach Consumer L/S ideas	HF	6	2d
+15	Point72 Academy Experienced Professionals Case Study	HF	3	4d
+15	How buttoned up do cold email pitches need to be?	HF	3	4d
+14	Head of Macro	HF	6	5d
+13	Old Fund Refusing To Cooperate As A Reference (Starting Competing Fund)	HF	11	2d
+13	What to do/learn about with 3 months free time before FT for HF prep?	HF	11	8h

1	redever	99.2
2	BankonBanking	99.0
3	Secyh62	99.0
4	Betsy Massar	99.0
5	CompBanker	98.9
6	GameTheory	98.9
7	kanon	98.9
8	dosk17	98.9
9	Linda Abraham	98.8
10	numi	98.8

Increased competition in prime broker bus for HFs?

See All Comments - 100% Free

Trending Content