Basel III battleground for primes
Liquidity constraints and capital buffers will lead to consolidation among prime brokers, it is claimed
The leader board of prime broking is dominated by around half a dozen players. Although new entrants to the market focusing on niches are not unknown, the business has been cornered by the likes of Credit Suisse, Deutsche Bank, Goldman Sachs and Morgan Stanley.
JP Morgan, which acquired Bear Stearns in 2008, has had success in the US as a prime but is still growing in Europe from a smaller base, having only set up its platform around three years ago.
Prime brokers such as JP Morgan say clients
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