Picture the scene: you’re a multi-billion-dollar long-short equity hedge fund that posts cash and securities to a major prime broker for financing and derivatives operations. One day, you wake up to discover the prime broker has defaulted, impounding millions of dollars of your assets and cash. Most participants would have found this scenario ludicrously implausible just two years ago. It no longer seems so far-fetched.
“The insolvency of Lehman Brothers International (Europe) (LBIE) was followe
The week on Risk.net, October 6-12, 2017Receive this by email
- SGX, HKEX expect to be among first wave of Mifid II equivalence
- Quantile, TriOptima face off in cleared swaps compression battle
- Leaked EU doc could shield legacy swaps from clearing grab
- ABS set for revival under US Treasury’s liquidity buffer plans
- Quants stymied by lack of alternative risk premia flows data