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18th September 2012

Scotiabank enters prime brokerage market

Scotiabank has announced it entry into the prime brokerage market. It is to use the PrimeOne platform developed by CoreOne. The bank is using its high credit rating and no Eurozone debt position to enter this market at the current time when other banks are cutting back.

“Prime brokers used to differentiate their business based on technology and their platform. But technology has become a lot more fungible,” said Michael Ginelli, head of product development at Scotiabank. “Since the credit crisis people tend to be a lot more focused on who the bank is. Counterparty is now the first port of call.”

“When you take proprietary trading out of an investment bank to get ready for the new regulation, you’re pretty much left with a client-centric business model. Prime brokerage is really where all the client services you provide come together,” said Rob Flatley, chief executive of CoreOne, which developed the new platform.
He added: “At the same time that you have this doubling down of focus on prime brokerage, you have a flight towards high quality credit counterparties who traditionally didn’t have prime brokerage businesses. That’s why we built PrimeOne.”