PRIME BROKERAGE
BY: MAHA KHAN PHILLIPS
PROFILE BY: SUSANNA ROBINSON
ANUJ SOOD
Title: Trader, Prime Broking/Equity
W
ithout prime the Greenwich Associates /
brokers, the Global Custodian 2008
hedge fund survey before the bank
Current employer: JPMorgan
industry would be lost. collapsed, had a multitude of
Previous employers:
Prime brokers provide a clients whose assets were
KPMG, London
centralised clearing facility frozen and are now severely
University: Delhi University, India;
for their hedge fund clients, disadvantaged or being
Cass Business School
and deal with their collateral forced to close, while
Degrees: Bachelors in Economics;
Masters in Investment Management
management requirements. Morgan Stanley’s prime
CFA program status:
Th ey provide operational brokerage unit has had
CFA Level III Candidate support, custody and back signifi cant outfl ows.
offi ce services, technology,
securities lending, fi nancing, FEAR FACTOR
What attracted you to this career path?
capital introduction, and a Hedge funds are scrambling
I am drawn to the fast pace at which information
host of other bespoke to move their assets out of
fl ows on the trading fl oor and how market
services. Th ey are, in short, troubled prime brokerage
participants are able to express their views
the oil that keeps the hedge units. Many fear another
continuously, using various existing/new products.
fund machine going. Lehman Brother’s situation:
To observe how integral when Lehman Brother’s
What are the major challenges you face in your
prime brokers are to the went down, it took many of
position?
hedge fund business, you its hedge fund clients with it,
The major challenges are to stay on top of news
only have to look at recent demonstrating just how
fl ow/events at all times and to be able to respond
market events. Th e number co-dependent the two
quickly to unexpected news/events.
of prime brokers in Europe is businesses can be.
slowly dwindling, meaning According to Joe Seet,
Are there certain skills you would consider useful there are less places for hedge senior partner of London-
for your job? funds to do business. Bear based Sigma Partnership, the
It is important to be able to respond decisively, on Stearns’ prime brokerage unit hedge fund advisory fi rm,
the spot. was integrated into prime brokers operate in fi ve
JPMorgan and Bank of diff erent areas: sales;
How do you think the role you’re in now will
America took over Merrill technology; equity fi nance;
change over time?
Lynch’s prime brokerage customer operations; and
Financial products are becoming increasingly
division as part of its deal to risk management.
bespoke to help clients to express markets views
buy out the troubled bank. “Technology guys will be
and/or to manage risk. The challenge will be to risk
Lehman Brothers’ prime responsible for maintaining
manage new trades effectively, taking into account
brokerage unit, which the integrity of the data
any potential risks/events.
received several top awards in interchange between trades,
Do you have advice for someone intending to
pursue the same career path?
“Sales is for guys who can sell,
The most important factor is a genuine passion for
markets and information. Strong educational
background, diverse experiences, and the ability to
can go to parties, kiss babies, and
concentrate long hours day in/day out is a given on a
trading fl oor. Three words if anyone wants to pursue
a career in markets – Read, Read and Read.
shake hands” Joe Seet, Sigma Partnership
66
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