Prime brokers look to capitalise on central clearing drive

With the large overlap between the requirements of prime broking and clearing there is an opportunity for the sector to provide a lead role in OTC clearing in Asia. But what restrictions are there on prime brokers operating in the clearing sector and how are banks in the region looking to integrate these parts of their business?

Prime broking covers a variety of functions provided mainly to hedge funds including global custody – which also covers clearing, and asset servicing – as well as securities lending, financing and managing margin exposure. Customised technology also provides clients with portfolio reporting needed to effectively manage money and the prime broker is often the contact point between other broker-dealers.

Technology is increasingly a battleground between clearing brokers especially with the