With the global pandemic radically changing the way hedge funds operate, combined with the high profile collapse of Archegos Capital, Mark Aldoroty of BNY Mellon's Pershing explains how prime brokers will have to stay on top.
The Swiss bank will undergo an extensive review of the business where it will focus on derisking and resizing its hedge fund servicing unit.
The incident further highlights the dangers of over-leveraging hedge funds and could force some prime brokers to recognise the excessive risk that can occur.
Cantor replaces BNP Paribas as Layton Road’s main prime broker client, with the French nearing the completing of its integration with Deutsche Bank’s business.
A recent survey from Credit Suisse Prime Services found allocators are increasingly using hedge funds to invest in private markets.
BNP Paribas’ expanded prime services business will launch after the integration of Deutsche Bank’s hedge fund clients is completed this year.
Custodians and prime brokers have sought to unlock the use of ETFs as collateral in securities lending transactions.
The resurgence in short selling and increased performance among hedge funds could pave the way for a profitable year for securities lending desks of banks.
Citi promotes internally to appoint co-heads of futures, OTC clearing, and FX prime brokerage (FCX), while the global head of prime finance has departed.
UK-headquartered depositary appoints Morgan Stanley executive to lead customer services and operations.