Adding a Second Prime Broker | Changing Prime Brokers

Adding a Second Prime Broker

Adding a Second Prime Broker

While 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

Related to Adding A Second Prime Broker | Hedge Fund Notes:

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• Hedge Fund Terminology
  
• Geographical Guides
• Hedge Fund Startup Tools
• Prime Brokerage Firms
  

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