Prime Broker Rankings
Prime Brokerage Firm Rankings
A quantitative and comprehensive analysis of global prime brokerage firms was presented in the 2007 Lipper HedgeWorld Prime Brokerage League Table. The research shows that the largest prime brokers by total 2006 assets are Morgan Stanley, Bear Stearns, Goldman Sachs, UBS and Credit Suisse.
Surveys by Alpha Magazine indicate that the most important aspect of service in prime brokers was operations, followed by client service, reporting and reporting technology, securities lending, trade execution and trading technology, financing, capital introduction and business consulting. Ranking of the prime brokers in 2007 according to the aforementioned criteria can be found on their webpage.
However, after the financial turbulence in the past six months, "there was likely to be a concentration of prime broking business with a smaller number of large service providers", said Mehraj Mattoo, global head of Comas, Commerzbank's fund of hedge funds unit, in an article by David Walker "How many prime brokers will be left?"
There has also been significant brokerage business flow among the remaining prime brokers. Hedge funds that account for about 10 percent of Morgan Stanley's prime-brokerage balances withdrew their money or told the firm they planned to (bloomberg news). Banks that are taking on new hedge-fund business include JPMorgan (a spokesman confirmed that the bank has seen a significant jump in volume and "they are managing it well."), Deutsche Bank, BNP Paribas, Credit Suisse and Citigroup (more).