JP Morgan aims to free up balance sheet with new Eurex Repo service
Banks are attempting to find ways to reduce their capital-intensive repo trading activity in order to avoid penalties.
Banks are attempting to find ways to reduce their capital-intensive repo trading activity in order to avoid penalties.
The mounting cost of regulation and capital requirements, coupled with the significant drop in new hedge fund launches, could pose an end to the mini-prime broker business.
The two associations found that post-crisis regulations have had a profound impact on banks’ SFT businesses and could detrimentally impact the securities lending market.
Tier two or ‘mid-tier’ prime brokers are winning a significant number of mandates from hedge funds which have either been exited by bulge bracket primes or who are struggling to be on-boarded by traditional players.