Northern Trust to Provide Custody and Administration Services for Hedge Fund Managers that use Merlin Securities as a Prime Broker

In an article in our September 24, 2009 issue, we discussed the emergence of smaller prime brokers to fill the services void left by the focus of larger prime brokers on their larger hedge fund clients.  See “Boutique Prime Brokers are Emerging to Provide Services to Small and Mid-Size Hedge Funds Marginalized by Larger Prime Brokers,” Hedge Fund Law Report, Vol. 2, No. 38 (Sep. 24, 2009).  One of the points made in that article is that certain smaller prime brokers are partnering with trust companies to offer segregated, safer custody of hedge fund customer assets, as well as administration services.  See also “Hedge Funds Turning to Prime Brokerage Trust Affiliates For Added Protection Against Prime Broker Insolvencies,” Hedge Fund Law Report, Vol. 2, No. 25 (Jun. 24, 2009).  Consistent with this trend, on September 29, 2009, Northern Trust and Merlin Securities announced an agreement whereby Northern Trust will provide Merlin prime brokerage clients with fully integrated access to Northern Trust’s global custody and administration services.

To read the full article

Continue reading your article with a HFLR subscription.