Driven by Increased Regulation & FinTech Innovation, Mini-Primes Seek to Make their Mark

The prime brokerage market in the United States has experienced significant changes in the last decade. The financial crisis of 2008 brought a wave of new financial regulations that put a strain of many of the biggest players in the prime brokerage market, and a continuing embrace of FinTech by the newest hedge fund managers has changed the list of demands they have of their prime brokers. The changing nature of the market has created ample opportunity for smaller boutique prime brokers, or mini-primes, as they have the technological capability that many hedge funds desire, along with the balance sheet flexibility to maintain compliance with new regulations.

Large Brokers Slowed by Increased Regulation

First published in 2009, Basel III is an internat ...

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