The Young Guns of Prime

Traders Magazine, April, 2008 by John Hintze and Gregory Bresiger

Pershing and Fidelity, two recent prime brokerage entrants backed by deep-pocketed parent companies, hope securities lending will propel them among the elite primes. Still, these prime brokerage units-launched by financial services giants Fidelity Capital Services and BNY Mellon's Pershing-are competing with long-established, bigger firms like Bear Stearns and Goldman Sachs.

"Fidelity, as an agency-only broker, could be an effective prime broker player," says Josh Galper, managing principal with the consultant Vodia Group.

Galper, however, questions if Pershing's prime brokerage's unit, also an agency only broker, will receive adequate support. He says this is because its parent's core custody business at BNY might end up competing with the prime brokerage unit...

Read the full article with a Free Trial at MyWire.

Premium Content Partnership | MyWire provides an in-depth online archive library of reference works.