NEW YORK (HedgeWorld.com)–Banc of America is revamping its prime brokerage platform, integrating the its equity swap capabilities with traditional prime brokerage services.
The firm hired Chris Pesce from Goldman Sachs last summer as global head of prime brokerage to manage the build-out of the new platform. Mr. Pesce is creating a management team drawing on both internal and external talent, according to BofA.
This announcement follows the resignation of a key prime brokerage executive, Stephan P. Vermut. He had been at the helm of the prime brokerage effort there for eight years as president and chief executive.
Glen Dailey, who was one of the original founders of the Banc of America Securities prime brokerage business, is staying on and will serve as chief operating officer of the group. A number of recent hires have helped the group to grow. Those hires include: Pascal Scemama, head of prime brokerage trading and risk, who joined from Merrill Lynch; Mark Whitehead, head of European prime brokerage, also from Merrill Lynch; Graham Cook, manager of the Chicago prime brokerage office, who previously had been with Goldman Sachs prime brokerage; and Bruce Giedra, head of tax and structured products for prime brokerage, who joined BofA from Lehman Brothers.
Officials also announced that Michael Rogers joined the firm as lead counsel for prime brokerage from Goldman Sachs. He reports to Bill Caccamise, who is the global head of the equities legal department.
The new prime brokerage will offer marketing risk-based margining, enhanced leverage and synthetic prime brokerage products. Risk-based margining will help clients finance across asset classes including derivatives, according to BofA. The prime brokerage unit also offers traditional prime brokerage services such as securities lending, capital raising services, customer office space, structured finance and online customer-reporting tools.
Mr. Pesce said in a statement, “We have built our reputation on being the leading provider of startup services to hedge funds and are committed to being the platform of choice for emerging managers.”