Multiple prime brokers here to stay

Global Administration Round Table: Confronting a challenging environment

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Many administrators are already used to working with multiple prime brokers.

“With expected changes in the traditional prime broker model for the servicing of hedge funds, multiple trading accounts with several brokers may become the norm, as opposed to one ‘prime’ brokerage account,” says Maria Cantillon at BNP Paribas Securities Services. “The challenge for fund administrators is the ability to facilitate frequent changes to the sources of daily trade, settlement and holdings files,” she notes.