The impending launch of portfolio margining in the US securities markets is starting to shake up the traditional prime brokerage business in stocks and equity options.
Portfolio margining, a staple of risk management in the futures industry for years, is expected to open the competition among firms for institutional business and among futures and options exchanges.
"It gives us a more level playing field, before it was a group of prime brokers doing joint back offices," said Steve Sanders, vice president of business development and marketing at Interactive Brokers [IB]. "Now many firms can do this. It lowers the cost to the end user and helps...