Derivative products, but an original approach to prime broking
Andrea Angelone, head of the equity finance desk at JP Morgan's equity derivatives group (pictured, left) and Neil Taylor, executive director, equity finance, from JP Morgan explain how the prime broker specialises in derivative solutions, and what hedge funds should take into account when using derivatives in their investment strategy
What do you see as the key challenges currently facing prime brokers?
The key challenges facing prime brokers currently include the move towards more esoteric and illiquid assets, leading to complexity around valuation, risk management, custody and settlement.
There is also a greater desire to trade over the counter (OTC) derivative products by hedge funds, which leads to a knowledge/service skill gap in servicing these products. Additionally there is a desire for secured financing and committed
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