[ I N D E P T H | P R I M E B R O K E R A G E ]
a shifting prime brokerage landscape
A tumultuous two years for the prime brokerage space has seen exits , scandals and a renewed approach to risk management which has truly shaken up the industry . But don ’ t think for a second primes are struggling , as opportunity beckons for those willing to invest and appeal to funds with market share up for grabs , writes JONATHAN WATKINS .
diversification of clients , with widespread talk of offboarding or limiting access for numerous funds .
The seismic change and adversity of the past 24 months has seen a shift in risk appetites and approaches , as primes are cognisant of the past : learning lessons from Covid , the meme stock phenomenon and the collapse of Archegos Capital . Opportunities for those still in the game and aggressive in their expansion plans lie geographically , in the desire from funds to focus on their core competencies , and in new strategies and assets classes - from crypto to cannabis .
Throw in the macroeconomic and geopolitical mayhem and , all-in-all , the prime brokerage space has gone through tumultuous change since March 2020 , for clients and providers alike .
A league of their own “ The one thing you know about us is that we ' re humble , modest and we know what we ' re good at ,” says Gerry Rubin , managing director , prime brokerage at Morgan Stanley . “ We ’ re not going
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