So who is the biggest prime broker? In terms of assets under management, Goldman Sachs (NYSE: GS) takes the title, accounting for 13.2 percent of the market. Goldman Sachs is followed by Morgan Stanley at 11.5 percent and Credit Suisse at 10.6 percent, according to Global Custodian's annual survey.

But which prime brokers have the best reputations? Deutsche Bank was tapped as the best prime brokerage for the fourth year in a row, followed by Morgan Stanley and Bank of America Merrill Lynch. Credit Suisse, which tied for the top spot in past two years, fell to fourth place. For Bank of America, the rankings were especially sweet, marking its reemergence in an industry that it sought to exit not too long ago. It re-entered the business when it acquired Merrill Lynch.

While assets under managed have crept back toward the $2 trillion level, recovering the ground lost in the financial crisis, revenues remain depressed. Prime brokers generated about $10 billion revenue, which is "at least a third below historical norms." While more prime brokerages are launching operations, it's hard to say the business has become more competitive. The top six prime brokers--namely, Bank of America Merrill Lynch, Credit Suisse, Deutsche Bank, Goldman Sachs, J.P. Morgan and Morgan Stanley--control up to two-thirds of the market. The lower revenue reflects the fact that leveraged activity--a key source of fees--has been muted by the uncertainty. Short sale activity has also been rather low key.

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