Prime Brokerage Trends: Survival of the Fittest

Several trends in the prime brokerage industry highlight the opportunity for providers to evolve their business.

Boston, January 30, 2020 – The state of the prime brokerage industry is anything but fixed. The core providers have remained upbeat in their recent quarterly reports, but the high cost of capital associated with running this business causes others to cut back their expenditures or retreat from the industry altogether. In this regard, Deutsche Bank’s sale of its prime brokerage and electronic equities clients to BNP Paribas in 2019 serves as both an opportunity and potential warning sign for other providers. In 2020, a better understanding of customer requirements should be a priority.

This report provides insights into the global prime brokerage industry, including the key market trends, prime brokerage selection criteria, and overall customer satisfaction for key prime brokerage services. It is based on data collected as part of Global Custodian’s annual Prime Brokerage Survey. In 2019, 746 market participants from 21 countries responded to the survey on topics related to prime brokerage and prime custody. To supplement the data collected, Aite Group also spoke with several business professionals at leading and second-tier prime brokers.

This 22-page Impact Report contains 10 figures and two tables. As part of Aite Group’s Partner Research initiative, this report is available for purchase only and is not part of Aite Group’s research offering. If interested in purchasing the report, please contact us.

This report mentions Bank of America, BCB Group, BNP Paribas, BTIG, Caspian, Citi, Cowen, Credit Suisse, Deutsche Bank, Global Custodian, Goldman Sachs, Integral, Jefferies, J.P. Morgan, Morgan Stanley, MSCI, Tagomi, and Troy Trade.

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