Opportunity for small prime brokerages

The big two in prime brokerage have long been Goldman Sachs and Morgan Stanley. Bear Stearns was almost in that tier until recent, ahem, events. But there are a host of mid-tier players, like Citigroup, and lower down the food chain, a host of really small prime brokers. Right now, they sense opportunity. While some have discerned a subtle flight to quality as of late, it's fair to say many hedge funds still want to diversify their stable of prime brokers, which may present an opportunity if you have a niche. Shoreline Trading Group tells FINalternatives that more hedge funds are seeking multi-clearing prime brokers. An innovative introducing broker can, in a way, be seen as middleware in the process. It represent an opportunity to add value via apps. And what is that value? Could be simple good service. Could be terrific software. Could be skill in certain markets. Could be a lot of things.  

For more:
- here's the FINalternatives article

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