1. Vastly different macro environments, both from an economic and regulatory
perspective, have increased the importance of diversifying financing
relationships jurisdictionally.
2. Investors are demanding more transparency of a hedge fund’s infrastructure,
counterparty relationships, portfolio structures and risk management.
3. Hedge funds require a greater legal understanding of asset segregation and rehypothecation
rules, and how they apply to their accounts.
4. The multiple-prime broker scenario has increasingly become the standard structure
for all hedge funds with a critical asset base.
5. Hedge funds need advanced operations platforms to manage these multiple
counterparty relationships.
6. Many large hedge funds have entered into multi-prime relationships in order
to manage counterparty risk.