Market volatility and high volume have exposed weaknesses in trading systems and technology offerings. This has led to reductions in service and increased down time in trading offerings. Providers with the ability to overcome these challenges have stood in good stead with clients.

Buoyancy in the hedge fund industry, following a year of strong performance, bodes well for the prime brokerage business. Numerous new funds are being launched and prudent prime players are benefiting from the renewed interest in the asset class.

Transparency, trust and a clear understanding of the prime broker’s risk management process can help managers build long-term sustainable relationships with their providers. This is especially critical among boutique and mini-prime brokers. These firms are meeting a growing need among emerging hedge fund managers as the traditional providers step further away from this part of the industry.

Although it ushered in a whole host of new challenges, when it came to client and audience engagement, the Covid-19 pandemic levelled the playing field between the big banks and smaller players in the prime brokerage market. It encouraged dialogue and boosted transparency. Further, in view of the expected growth in outsourced trading in Europe and Asia, ensuring a good fit between providers and clients has never been more relevant. 

By A Paris – Just four months into 2021 and the hedge fund industry had already experienced two major events affecting prime brokerage – the GameStop run and the Archegos collapse. Though these incidents may have rocked some firms, others have held strong and are almost appreciative of the greater scrutiny resulting from such episodes.

Now that the considerable cloud of dust has settled following the collapse of Bill Hwang’s family office, Archegos Capital Management, one is able to assess the damage inflicted.

BCS Global Markets: Best Boutique Prime Broker – The prime brokerage landscape has seen significant changes over the last couple of years, making it difficult for funds to source the right prime partner. BCS Global Markets has established itself as a boutique prime within the equities space and has recently won Hedgeweek’s Best Boutique Prime Broker award.

SEB: Best Prime Broker – Although client interaction has increased through the shift to virtual working, the importance of relationships in the hedge fund business means physical meetings remain critical.

City Credit Capital, a world leading multi-asset brokerage group, is pleased to announce that City Credit Capital (Cayman) has been formally granted a full broker dealer license by the Cayman Islands Monetary Authority (CIMA). 

BCS Global Markets’ (BCS GM) UK-based Prime Brokerage business has been voted the 'Best Boutique Prime Broker' in the Hedgeweek Europe Awards 2021.