Tue, Feb 28, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Technological evolution needed as multi-prime model continues to gain momentum

Thursday, June 30, 2011
Opalesque Industry Update – The falling of Lehman Brothers served to cement the growing multi prime brokerage trend within the hedge fund industry. Hedge funds that found themselves unable to access their own money drove home the importance of infrastructural risk management, and the multi prime model is considered by many institutional investors to be a “best practices” consideration for investing. The drawback is the cost and the time constraints that multi primes can have on managers who need to find ways to gather data across multiple platforms, and research company Celent sees the need for a technology evolution that will keep up with managers needs as multi-prime grows more and more standard practice.

“The market is still dominated by single asset solutions, but the movement is clearly toward a multi-asset prime brokerage platform supporting clients’ expansion into new asset classes. Complete cross-product post-trade processing is where the industry needs to go to,” says Axel Pierron, SVP at Celent and author of the Celent Report “New Basis for the Hedge Fund/Prime Broker Relationship”.

“Prime brokers’ customers are expecting them to carry real time processing and statuses, intraday busi- ness controls, and real time settlement and position status. This is obviously challenging in a multi-asset and multi-market environment.” adds Pierron. “Additional tools are needed in the risk management context to accurately compute the portfolio’s exposure and other risk measures. Therefore, the platform should not be limited to providing a consolidated view of positions and integrated reporting.

Kirsten Bischoff

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Comment - Mortgages, mergers and hedge fund fees, Fairholme's Berkowitz responds to court ruling against hedge fund suits of Fannie Mae[more]

    Mortgages, mergers and hedge fund fees From Bloomberg.com: Yesterday the U.S. Court of Appeals for the D.C. Circuit handed down an odd decision in a lawsuit over the government's nationalization of Fannie Mae and Freddie Mac. The key issue is what's called the "Third Amendment," the 2012

  2. Investing - Hedge funds continue to chase the herd in record Momentum wager, Marshall Wace bets grocer Sainsbury may need rights offering, Hedge fund net exposure has started to retreat, David Tepper's Appaloosa fund makes a huge buy, The 10,000-mile journey to Short Australia, Skeptical hedge fund investors grill Evan Spiegel about Snap's I.P.O.[more]

    Hedge funds continue to chase the herd in record Momentum wager From Bloomberg.com: Hedge funds can't get enough of momentum - even if it means embracing an investing strategy they hate. Loosely defined as betting on shares that went up the fastest over the preceding nine-to-12 months, h

  3. Opalesque Exclusive: Swiss investors take fund seeding and acceleration into their own hands[more]

    Benedicte Gravrand, Opalesque Geneva: Banque Bonhote, a 200-year old Swiss private bank, last year launched a community of investors - heads of Swiss family and advisory offices and wealth managers - with the aim of co-investing in the kind of managers they wanted to invest in, either by way of s

  4. K2 Advisors : Why We Like Activist Hedge Fund Strategies and Some Thoughts on Alpha[more]

    Matthias Knab, Opalesque: Rob Christian, Senior Managing Director, Head of Research K2 Advisors, Franklin Templeton Solutions, writes on Harvest Exchange: When d

  5. Ex-Navy SEAL backed by Mario Gabelli, Jean-Marie Eveillard and other value giants off to strong start[more]

    From Valuewalk.com: Sententia Capital Management is not your average value focused hedge fund. The fund was founded by Michael Zapata, a former Navy Seal Team 6 Officer and has attracted funding from some of the best-known names in the value space. Mario Gabelli, Jean-Marie Eveillard from First Eagl