In May ISLA welcomed nearly 100 market participants to London for our second ISLA Connects Educational Briefing of 2025.
Kindly hosted by Barclays, the evening session explored the demand side of securities lending focussing in on the role of prime brokers – from the services they offer to the types of clients they serve and how their business model has evolved over time.
Delegates received a detailed view of how securities lending works within the prime brokerage ecosystem, enabling hedge funds to implement their diverse trading strategies. The group also explored how funds can benefit a range of services and solutions offered by prime brokers including risk management, and financing capabilities as well as market insights and even strategy consulting.
Key takeaways:
- The prime brokerage industry is in a state of dynamic evolution, driven by a confluence of factors including technological advancements, evolving client demands, and an ever-changing regulatory environment.
- Given that it is a competitive market, prime brokers (such as Barclays) offer a broad range of value-added services, including market insights, regulatory advice, and bespoke technology solutions.
- The industry is also increasingly using technology and data as a key differentiator focusing on efficient execution, flexibility, and real-time risk management.
- Although AI and automation offer efficiencies across many aspects of the industry, long term, strategic relationships between brokers, funds and investors are still at the heart of the industry.
- While skills such as coding are valuable, interpersonal skills and hunger for problem solving are key. Those looking to join the industry should not be afraid to ‘go down the rabbit hole’ when understanding a problem to find the best possible solution.
Following the session, delegates joined for a structured networking session, providing the opportunity for guests to connect, and build new networks which are fundamental to the future of our industry.
This was the second of many ISLA Connects events planned for 2025, to find out more about ISLA Connects, and how you can get involved, click here to read our newly updated site.
