Each client in the market of a prime broker will have certain technological needs related to the management of its portfolio. These can be as simple as daily statements or as complicated as real-time portfolio reporting, and the client must work closely with the prime broker to ensure that its needs are met. Because of the fact that a prime brokerage provides so many essential services that are crucial to the efficient and hopefully profitable operation of a hedge fund, the selection of a prime broker is a major decision for a hedge fund manager. Among the primary considerations in selecting a prime broker are the price of the various services offered, easy access to large holders of securities, including holders of less liquid and more difficult-to-borrow securities, and trading confidentiality. So far the expansion of Prime Services clearing investment universe (already interest rates, CDS and FX have been added) has been driven by client demand. Clearing and liquidity is concentrated on ICE, CME, LCH and Eurex, where Prime Services has memberships of all major CCPs, and is actively clearing.

what is prime services

We were able to pivot and offer different products and solutions to these clients. We provide a full suite of financing capabilities across equities and fixed income products, designed to help clients efficiently manage their liquidity and financing needs. Innovative risk management systems provide real-time views into trading activity and snapshots of global portfolio risk.

What Is a Prime Brokerage?

He leads all fixed income sales and trading globally, as well as heads the investment committee for parts of Cantor Fitzgerald Asset Management. Our process begins with an in-depth consultative review of your firm’s marketing and capital-raising strategies. We take the time to develop a deep understanding of where your business is today and what your goals are for tomorrow, and then tailor capital-introduction strategies to meet your specific needs. By leveraging our knowledge of industry service providers we aim to facilitate key introductions and discussions with the goal of achieving the right operational fit for our customers’ business. You are leaving wellsfargo.com and entering a website that Wells Fargo does not control. Wells Fargo has provided this link for your convenience, but does not endorse and is not responsible for the products, services, content, links, privacy policy, or security policy of this website.

Working seamlessly across our global network, our team can track, synthesize and utilize the information gained from our manager and investor relationships to make effective client introductions. We partner with clients across the globe and are active in 30+ lending markets. Prime services provided by the broker-dealer division of StoneX Financial Inc. (SFI), Member FINRA/NFA/SIPC and registered with the MSRB. Securities and Exchange Commission (SEC) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Adviser.

Prime Services and Securities Lending

He writes for The Ascent and The Motley Fool, and his work has appeared in USA Today and Yahoo! Finance. He was born in California but currently lives as a digital nomad with a home base in Colombia. Wedbush is active in the creation and redemption process for all major ETF families. Our automated tools for trade billing, reconciliation, and what-if analysis provide an accurate and efficient perspective for our clients. Our strong financial position, custom technology solutions, and operational excellence enable you to conduct business with confidence and ease. Prepare for future growth with customized loan services, succession planning and capital for business equipment.

what is prime services

“Organizing the unit under one roof allows for aggregation of risk and optimizing of collateral, all in the same legal entity, which permits cross-margining across all asset classes,” elaborates Topple. Even pre-Prime Services, Newedge was renowned for holistic cross-margining, across markets, instruments and venues, which afforded funds capital efficiencies in terms of lower margin requirements. Societe Generale (Soc Gen) has invested heavily in fully acquiring and integrating Prime Services, and is focusing on the prime brokerage business, which continuesto enhance its franchise with recent minority stakes such as GMEX and ERIS. As capacity contracts elsewhere, and while industry assets reach new records, a vacuum is opening up – and the emboldened Prime Services is a credible alternative (or complement) to the largest incumbents. In addition to core prime brokerage services, Fidelity Prime Services offers a multitude of additional services designed to help differentiate and scale your operations.


The integrated formula seems to be working as Prime Services saw four quarters of steady, sequential growth in Net Banking Income (NBI) after acquiring Newedge. In 2014 this grew from €101 million in the second quarter of 2014, to €117 million in the fourth and first quarter 2015 results unveiled a further 25.1% increase in to €144 million; this has stabilized at €142 million in the second quarter. And at the group level, Soc Gen’s second quarter 2015 results beat consensus forecasts with a 25.1% growth in net income. The IG platform is ideal for beginner traders since it provides clients with a vast range of educational resources, a demo account and a user-friendly and intuitive interface. Being one of the world’s biggest CFD and spread betting brokers, IG offers over 10,000 instruments to trade on MetaTrader 4. Market makers provide liquidity to markets by means of regularly buying and selling assets.

what is prime services

We are a sophisticated and flexible multi-asset financing platform across both cash and synthetic channels. Through collateral and cash optimisation, we offer a single point of access to treasury strategies, with the ability to convert the treasury function into a source of alpha. Our credit prime platform provides a one-stop-shop to source, execute and access financing in the credit universe, including systematic credit.

Capital Advisory Group

Prime brokerage services are provided to institutional clients by major investment banks such as Merrill Lynch and Goldman Sachs. They also charge different rates depending on the volume of transactions a client does, the number of services a client uses, and so on. We arrange safekeeping and administration of global securities through our international custodians, offering access to fully integrated and flexible custody services across markets worldwide. Another facet of clearing is the regulatory requirement for cleared, segregated client assets to be sitting on Soc Gen’s balance sheet – something that Soc Gen is perplexed by. “Segregated deposits should not be seen as assets of the bank when we cannot use, touch or re-hypothecate them,” argues Topple, which means the banks cannot use the deposits towards credit creation and generating extra returns.

what is prime services

We also consult on fund positioning, approach, strategy, and marketing, and provide access to our proprietary events so our clients can build relationships with institutional investors across the globe. The standard online brokerage account won’t cut it for sizable clients, though. Larger clients need a wide spectrum of financial services, and that’s where a prime brokerage agreement comes in. Our team of experienced Capital Introduction specialists connects you with investors to keep you at the forefront of investment trends.

Prime Services is building on the foundations laid by Newedge, with synergies from Societe Generale particularly valuable on the equity side. The Hedge Fund Journal met with four of the senior management, at Prime Services Bishops Square offices in London’s financial district, to hear how the integration benefits clients, and what Soc Gen’s ambitions are for the new entity. Prior to Jones Trading, Mr. McGoldrick was a Director of Prime Brokerage and Outsourced Trading at Cowen.

It is a big financial organisation that enables a market participant to enter the financial market. Previously, he was the Head of Equity Execution Trading at Barclays from 2013 to 2017, where he was responsible for the trading, sales trading, desk analyst, and low-touch electronic businesses. Before that, he was Head of TMT Cash Equity Trading at Morgan Stanley, and Head of Cash Equity Trading & Risk at Nomura, where he grew the business from 67th to 10th in market share in less than one year. Lyle Daly is a personal finance writer who specializes in credit cards, travel rewards programs, and banking.

Our client service professionals act as a central point of contact, working with legal, compliance, risk, operations and technology to execute long- and short-term strategies. They engage with corporate action as well as trade and cash-management personnel, ensuring that every client’s business is fully supported. Our Capital Introduction team provides our hedge fund clients with targeted introductions to the world’s leading pension plans, endowments, foundations, family offices, sovereign wealth funds, insurance companies, funds of funds, private banks and consultants. Even so, these services are highly sought after by clients and the best banks only accept the clients that are most likely to be beneficial to them over time. For this reason, a hedge fund would probably need to have as much as $200 million in equity in order to qualify for the best treatment.

These forms of investors often deal with a large amount of cash for investment but do not have the internal resources to manage the investments on their own. We offer Prime Services to emerging and frontier markets-based financial institutions and asset managers. Shooting What Is Customer Relationship Management for top five status
So what more precisely are Prime Services ambitions? Already one of the largest five prime brokers in Europe, it aspires to top-five status globally in two ways. Long-term Prime Services wants to become one of the top-five prime brokers globally.

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