We know the pressure is on for prime broker revenues. Since the financial crisis, the traditional prime brokerage industry has been far from the same. From the shifting composition of the hedge fund industry to the substantial regulatory requirements placed on banks, to new players entering the market, the challenges are substantial.

In order to keep and capture market share, prime brokers need to differentiate themselves. One very real way to go after that elusive deal flow—and maintain and grow your client base—is through leveraging technology and operational efficiencies. From our view, many participants in the prime brokerage industry need to undergo a technology and operational refresh to meet the demands of a transforming capital markets landscape.

Numerix’s technology solutions enable prime brokerage firms to enhance the capabilities they offer hedge fund clients. For instance, one example of market-leading functionality that Numerix provides is a real-time, distribution, fault-tolerant, event-driven calculation framework that uses a dynamic dependency graph to maximize efficiency and throughput, which can help enable trade profitably for your own accounts and be used to successfully advise clients on their derivatives trades. Numerix also offers the tactical quantitative services necessary to supplement your own quantitative staff and free them to work on strategic projects.

Numerix Prime Broker Solutions Help Firms:

Execute real-time pricing and risk calculations for any derivative type (from vanillas to exotics) across all asset classes

 

Complete straight through processing from counterparty trade execution to clearing agent settlement

Validate counterparty prices and initial margin/collateral charges during trade negotiations and afterwards, to obtain the best terms possible, to reduce post-trade disputes, and to optimize collateral usage

 

Value, calculate P&L and understand the risk of derivative portfolios of any size, from hundreds to millions of trades

Quickly structure and price new structured products and exotics, to increase time-to-market for trading the new instruments

 

Produce advanced market risk and counterparty risk analysis to support risk management activities and to create high-value client reporting

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