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

Almost Human

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Increased competition in prime broker bus for HFs?

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