Switching Prime Brokers
Switching Prime Brokerage Firms
(http://PrimeBrokerageGuide.com) Lately you might have noticed an ongoing "battle of the press releases" in the media by many prime brokerage firms. These are typically written so that the firm is positioned as being safe, technologically advanced or recently swamped with new business. This is because these firms know that many decisions are being made each day right now by hedge fund managers regarding where to prime.
More funds than ever before are now deciding to multi-prime or switch prime brokers altogether. Here is a reason excerpt and quote from someone at UBS speaking to this point:
Across Wall Street, hundreds of investment funds that relied on broker-dealers established accounts with commercial banks boasting stronger credit. The moves have shaken up a business long dominated by Morgan Stanley, Goldman Sachs Group Inc and Bear Stearns.
"It's a $2 trillion business and in normal market conditions, people kill themselves to move 1 percent of market share. In recent weeks, probably 35 to 40 percent of global market share has been redistributed," said Alex Ehrlich, global head of prime services at UBS. "Never has there been a more disruptive period."