Prime brokers see value in hedge fund clients, says former Newedge general counsel

Gary DeWaal spent 27 years at Newedge, most recently as group general counsel. He talks about the relationship between prime brokers and hedge funds and the impact of regulation on the industry.

looking-beyond-binoculars
   Gary DeWaal

How do investment banks view hedge funds?
Many banks view hedge funds as a lifeboat. To the extent that they have to push out proprietary trading, they see hedge funds as a place for talented personnel with whom they don’t want to lose a relationship.

Although they are losing them as internal prop traders, they are gaining them as clients. That is a trade-off they don’t want but it is better than no trade-off at all.
Hedge funds continue to be important clients of the broker

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