GPP to shutter prime brokerage business
Global Prime Partners (GPP) is planning to close its prime brokerage division after falling victim to increased regulatory costs and capital restraints.
GPP will close its London-based prime services unit following an extensive review of its main business lines, and has opted to focus on its wealth solutions and clearing and custody services.
The firm will begin an orderly wind-down of the business, which is anticipated to take up to 12 months to complete, GPP said in a statement.
“Profit margins in prime brokerage have been contracting for some time while the inherent risks of lending as well as regulatory capital requirements are increasing,” GPP stated.“Our focus going forwards will be on growing our global clearing and wealth custody capabilities, and we will be making investments in these areas to achieve our business objectives over the coming yea...