Latest News
HazelTree and Goldman Sachs Asset Management (GSAM) have formed a strategic partnership to assist hedge funds, fund administrators, managed account providers and family offices in improving their cash management.
The partnership is in response to the changing regulatory environment for systemically important financial institutions (SIFIs), particularly Basel III guidelines on capital requirements and balance sheet composition.
“Because of these new requirements, banks’ desire to accept or retain short-term cash deposits on their balance sheets has become challenging for SIFIs, and many institutional investors may not be able to keep cash balances on deposit in the same way they have
- 17/12/2015
Automation lies at the heart of Interactive Brokers' prime brokerage model. Be it for risk management, account management, trade execution and pricing, everything is streamlined so as to provide fund managers with a cost-efficient solution.
Interactive Brokers can be viewed as a technology company that operates in the PB marketplace. At a time when bank-owned primes are overhauling their legacy IT systems to bring them into the 21st Century, the ability to remain nimble and technologically lean is working in the favour of non-banking primes like Interactive Brokers.
"We are constantly updating our systems for the future. I would say
- 17/12/2015
- 17/12/2015
Regulation, in the form of AIFMD and Basel III, has had a profound effect on the way that prime brokers and fund managers view their relationship. Ten years ago, things were simple. Hedge funds and prime brokers alike operated with fewer regulatory constraints, leverage financing was more freely offered to funds of all shapes and sizes. But the environment has become a lot more complex. Banks' balance sheets come under increased pressure and managers face direct regulation under AIFMD, requiring those running EU-based AIFs to appoint a depositary.
"Last year, one of the biggest impacts of AIFMD was that it
- 17/12/2015
There's no question that regulation is causing prime brokers to reassess, and, where necessary, evolve their business model. Much is made of the fact that prime brokers are ruthlessly culling hedge funds, banishing them to hinterland. Hedge funds that aren't generating revenues for their primes have become the vampires of high finance, sucking the lifeblood out of banks' balance sheets.
Speak to any prime broker and the stock response is: `We need to improve our return on assets'.
This is completely understandable; necessary even. But it is equally incumbent upon hedge funds to assess, and, if necessary, cull their prime
- 17/12/2015
As the industry watches the growth of liquid alternatives among institutional and individual investors, fund managers are also looking ahead. The retirement market may be the next frontier. It represents a large and growing pool of assets driven by the importance of retirement savings across multiple investment segments.
How is growth in the retirement space opening the door to liquid alternative strategies? This Q&A with Pershing's subject matter experts Mark Aldoroty (pictured) and Rob Cirrotti will help fund managers understand what to consider when looking to the defined contribution (DC) plan space as a growth opportunity. There continues to be
- 17/12/2015
- 17/12/2015
By Jerry Lees (pictured), Linear Investments – A quasi-revolution is happening in prime brokerage. Post-2008, bulge bracket banks were non-discriminatory in the type of hedge fund business they onboarded as managers and their end investors sought to minimise counterparty risks post-Lehman Brothers by opening up accounts with multiple prime brokers. Today, the landscape is vastly different.
Basel III is having a profound impact on bulge bracket banks and their prime brokerage operations. The rules force banks to adhere to Liquidity Coverage Ratios (LCRs) which require them to hold onto sufficient High Quality Liquid Assets (HQLA) to manage down a 30-day market
- 17/12/2015
- 17/12/2015
Pre-2008, Prime Brokerage was a land grabbing exercise. Balance sheet was put to work, free of the shackles of regulation, and hedge funds of all shapes and sizes were welcome. That model has now changed under Basel III. And whilst US banks were quick to recapitalise following the financial crash, European banks have taken longer to assess their balance sheets. Many are now taking steps to restructure as a result.
"In the post-2010 era, it has become a much clearer regulatory environment and a much tougher capital situation, particularly for European banks. I think US banks, with liquidity stress testing
- 17/12/2015
- 17/12/2015
Earlier this year, Concept Capital Markets LLC was acquired by Cowen Group, Inc. ("Cowen"), a US investment bank and alternative investment manager with a heritage dating back to 1918. The transaction was completed 1st September and thanks to the significant financial resources that Cowen has at its disposal, the newly named 'Cowen Prime Services' division is now in a strong position to move quickly and build out its market share; with Europe a key focus of attention.
"We believe that there is a real opportunity for Cowen Prime Services to enter the European market and be successful," comments Mike Rosen
- 17/12/2015
- 17/12/2015
US prime brokers are stealing a march on their European peers as European banks grapple with the demands of shoring up their balance sheets to comply with Basel III rules. As Reuters reported 7th October 2015, Goldman Sachs and Morgan Stanley have a 37 per cent market share, up 6 per cent from the end of 2014 (according to data from Preqin). Goldman was servicing 2,240 hedge funds through May 2015, followed by Morgan Stanley with 1,693. JP Morgan rounds out the top three with 1,462 hedge funds.
Credit Suisse Prime Fund Services is the highest ranked European PB, with
- 17/12/2015
in association with HRH The Duke of Cambridge’s ongoing patronage of non-profit organisation’s philanthropic initiatives.
SkillForce is a national education and veterans charity dedicated to helping young people flourish through motivational mentoring and education programmes for five- to nineteen-year-olds. Their mission is to help young people develop the skills they need to succeed in education, work and life, drawing upon the military experience and values of ex-services personnel.
100WHF has a strong track record of supporting charities and has raised more than USD38 million (gross total) for philanthropic causes in the areas of women’s and family health, education and
- 16/12/2015
Special Reports
FeatureD
- Intel
- April 26, 2024
- Intel
- April 25, 2024
- Intel
- April 24, 2024
- Intel
- April 23, 2024
- Intel
- April 22, 2024
- Intel
- April 19, 2024
- Intel
- April 18, 2024
- Intel
- April 17, 2024
