Fri, Jul 29, 2016
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. Opalesque Exclusive: California-based manager launches long/short equity hedge fund with unique algorithm[more]

    Benedicte Gravrand, Opalesque London for New Managers: SJL Capital LLC, an investment advisory firm based in California, has launched its maiden fund, the SJL MarketDNA Hedge Fund LP. The fund, which began trading

  2. Manny Roman to move from Man to Pimco[more]

    Benedicte Gravrand, Opalesque London: Emmanuel (Manny) Roman, an investment world veteran, has been hired by PIMCO, the large US bond fund house, as chief executive officer. PIMCO's current CEO Douglas Hodge will assume a new role as managing director and senior advisor when Roman joins P

  3. HFR: Hedge funds post strong gains in mid-July as markets recover from Brexit losses[more]

    Komfie Manalo, Opalesque Asia: Hedge funds posted strong gains through mid-July as the equity markets continued the recovery from Brexit losses. The HFRX Market Directional Index gained +2.17% (+4.22% YTD) and the HFRX Global Hedge Fund Index gained +1.03% through mid-month (+0.19%

  4. News Briefs - Carlyle goes on trial for a financial-crisis meltdown, Private equity and venture capital outperformed public markets in 2015, Pippa Middleton gets engaged to hedge fund manager James Matthews[more]

    Carlyle goes on trial for a financial-crisis meltdown Carlyle Group co-founder Bill Conway was in court on this small island last week recounting one of the most bruising episodes in his private-equity firm’s history: the 2008 collapse of mortgage-bond fund Carlyle Capital Corp. Carlyle

  5. …And Finally - Two men fall off cliff playing Pokemon Go[more]

    From BizarreNews.com: Two men who fell from a seaside cliff north of San Diego told authorities they became distracted while playing augmented reality game Pokemon Go. Encinitas fire Battalion Chief Robbie Ford said one of the men fell about 50 feet down the bluff in Encinitas while the other man fe