Adding a Second Prime Broker | Changing Prime Brokers

Adding a Second Prime Broker

Adding a Second Prime Broker

Adding A Second Prime Broker | Hedge Fund NotesWhile looking for a client document online I found a white paper on prime brokerage which discusses the use of multi prime brokerage firms by a single hedge fund.

This white paper claims that the benefits of adding a second prime broker include:
  • Mitigation of risk: counterparty, financing, liquidity and operational
  • An additional source of alpha-generating trade ideas, capital
    introductions, etc.
  • Ensure optimal financing through competitive pricing of
    margin lending and stock loan
  • Gain access to competitive or innovative cross-margining
    policies of the competing prime broker
  • Leverage across the relative strengths of service providers
    in synthetic financing, swap trading or market access
  • Catalyst for reduced dependency on outside service
    providers, giving greater direct operational control
This full white paper may be read here. To contact prime brokerage firms who have helped support this website please see our service provider directory listing of them here: Prime Brokers

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Tags: Adding A Second Prime Broker, Switching Prime Brokers, Prime Brokerage, prime Broker, Prime Brokers, Add a Prime Broker, Multiple Prime Brokers, prime broker changes

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