Make the right strategic decision, evolve to a multi-prime environment.
In the past, a typical hedge fund or hedge fund launch involved a single prime broker with possibly multiple executing brokers. Today, and largely in response to the very real issue of counterparty risk, more and more funds are making a strategic decision and evolving to a multi-prime environment.
Why multi-prime (multiple custodial relationships)?
- Diversification of counter-party risk
- Greater access to securities lending programs
- Access to multiple execution platforms
- Competitive pricing on margin lending and stock loan
- Greater access to product and service offerings
Operationally, multiple prime relationships can be a challenge. With the three basic options being: (a) consolidated reporting by primary prime broker; (b) using of third party administrator; and (c) building an in-house system. Of these options, prime broker consolidated reporting is the least expensive and easiest to implement.
Through the use of the
mshPRIME platform, firms can overcome the operational challenges and transition to the multi-prime model, diversify risk and benefit from additional services without experiencing an increase in operational costs.
As your most important service provider, M.S. Howells & Co. offers the benefit of multiple custodial relationships via Jefferies & Co. and Goldman Sachs Execution & Clearing, L.P. in a single platform. The
mshPRIME platform gives you the ability to receive accurate and efficient portfolio reporting from any combination of prime brokers and custodians.
