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Instead, a combination of rising interest rates, inflation, soaring energy prices and geopolitical tensions have hit hedge funds, and subsequently the riskmanagement practices of prime brokers. Elsewhere, other local regulatory changes and benchmark replacements continue to impact prime brokers.
The move follows Redburn Atlantic’s winning Best Agency Broker at The TRADE’s inaugural 2024 Leaders in Trading New York Awards in November. Aroeman brings more than 30 years of industry experience to his new role, largely covering the delivery of derivatives, structured products and riskmanagement solutions to Indonesian clients.
RBC appointed Guy Chalkley as managing director, UK flow rates sales. Chalkley brings more than three decades worth of financial services to the role, in both portfoliomanagement and rates sales. Frédéric Benizri left TP ICAP to join financing, investment and riskmanagement business CIC Market Solutions as a sales trader.
Dominic Rieb-Smith, managing director, international head, prime services sales, JP Morgan, refers to the past year as “a standout”. Data from Convergence tracking the top 25 prime brokers showed their market share grew from 83.3% in April 2023, to 92% in 2024.
Financial institutions with good credit ratings offer swap facilities to clients and charge fees from brokers. Risk is diversified through dispersal of swap transactions among many clients. The broker-dealer network facilitates such decentralized trading of derivatives, equity and debt instruments.
Papanichola began his career at interdealer broker, GFI, however quickly realised the environment wasn’t the one for him. It’s about riskmanagement philosophy and methodology,” explains Papanichola. The traders are now discretionary execution guys and the portfoliomanagers (PMs) don’t get involved.
The role of prime brokers and global custodians is also set to be addressed in this vein with an end goal of allowing market participants better access to data and ultimately, better execution. Related to this, is the third focus – FX data and the promotion of it’s good use.
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