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Kelvin To
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Access Pilot May Lose Direction When New Exchanges Appear

Kelvin To examines the SEC Access Fee Pilot and how the exchanges should spin-off their data and technologies businesses.

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December 20, 2007

Merrill’s Broker-Neutral Play

Clearing Quarterly & Directory

By Gregory Bresiger

With hedge funds using multi-prime broker platforms, Merrill Lynch says its new middle- and back-office management system, Merrill Middle Office Solutions, will provide a broker neutral technology solution.

The platform uses the British GlobeOp open platform, which provides both global processing and servicing functions, according to Merrill officials. They added that the central product of Merrill Middle Office Solutions is a data consolidation engine, with overnight reconciliation of cash and security positions for multiple prime brokers.

“Our strategy,” says Jeff Penney, cohead of global markets financing and services at Merrill Lynch, “is to facilitate the flexible, independent multiple prime broker environment most hedge funds prefer, giving these hedge funds access to competitive pricing for financing.”