10, 2015 /PRNewswire/ -- Hedge fund managers are experiencing the ripple effects of new regulations on banks and prime brokers
, with hedge funds facing increased trading fees and broader changes to business relationships.
We are pleased to partner with UBS, one of the industry's premier bank prime brokers
, to strengthen our market position,' said Anthony Brocco, chairman, Advanced Markets Ltd.
We expect significant growth in the equity derivatives and synthetic finance space in response to the regulatory pressures facing prime brokers
and their clients.
The jury is still out on whether this investment strategy will be successful and this, plus the HIRE Act, which allows tax authorities worldwide to hunt down and prosecute firms using synthetics to bypass withholding tax of US share dividends, may well dampen enthusiasm among prime brokers
if they suspect the investment is purely for tax purposes.
Currently, the settlement of hedge funds' trades between their executing and prime brokers
occurs as OTC transactions without any CCP guarantee.
Leading US and European banks are engaged in intense competition for lucrative business in the hedge fund industry and this is pressuring margins and may be eroding credit controls, say senior prime brokers
NYSE:BR) today announced the launch of its post-execution processing solution for prime brokers
and investment banks.
The award recognizes ENSO's groundbreaking alpha-generating analytics, which is transforming the way that hedge funds and prime brokers
communicate and exchange information, resulting in both improved return metrics and economics for both the fund and the dealer.
leading the initiative and covering execution in the regional markets include Credit Suisse and UBS.
BNY Mellon Alternative Investment Services, a unit of Bank of New York Mellon Corporation (NYSE: BK), has launched a new service that independently validates a hedge fund's position records to third-parties - prime brokers
, custodians, trustees and agent banks - and independently verifies the pricing of that fund's securities.
com/research/913b1d/when_prime_brokers) has announced the addition of John Wiley and Sons Ltd's new book "When Prime Brokers
Fail: The Unheeded Risk to Hedge Funds, Banks, and the Financial Industry" to their offering.
The increase reflects both growth in overall hedge fund assets under management (AUM) as well as lower levels of borrowing from prime brokers