The future of Prime Brokerage: How buy-side demands are creating opportunities for new entrants, which is released today, is based on a survey and series of interviews with senior executives at hedge funds and prime brokers. The report found that the prime brokers have become more selective in their offerings to hedge funds since the implementation of Basel III. In addition, for prime brokers, the traditional stickiness of client relationships is weakening. Many hedge funds are now running sophisticated risk and margin management analysis and are calling for a more harmonised margin process across brokers. The interconnectivity between clients, prime brokers, venues and clearing houses, combined with multiple ownership claims on individual securities, elevates the potential points of failure across the trade lifecycle.