Trading Desks Trade Less Lend More

🚨 🚨 Prime brokerage accounted for more than half banks’ equities revenues in 2023, a record share that underlines how providing financing and market access to hedge funds is simultaneously anchoring and redefining banks’ trading divisions.The top 30 banks made an unprecedented US$32bn in prime services and futures in 2023, according to Vali Analytics, up from US$26bn in 2020 when activities represented 43% of equity trading revenues. That fast-growing pie, fuelled by the breakneck expansion of multi-strategy hedge funds, is encouraging banks to compete ever more fiercely in a business that only three years ago triggered a death spiral at Credit Suisse
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