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Societe Generale
Weighted
average
scores
2016
5.79
2016
2017
2018
2017
5.22
5.79
5.22
5.47
2018 is interested
5.47 in managers of all types and sizes). One respond-
I
n theory, Societe Generale Prime Services combines the
ent with experience of the capital introductions team is clearly
financing capacity of a global bank with expertise of a global
profile
unhappy,
but the average score suggests he is not alone.
derivatives broker. It ought to offer prime clearing as well as Respondent
Small fund
prime brokerage, with commensurate scope to win business
44%
managers
through skilful cross-margining. The prime clearing component
6%
Medium-
looks to be in rude health, with Weighted
excellent scores for both swap sized fund
50%
average
clearing and futures. “We are happy
with the many exchanges managers
44%
scores
and products available to us through
Large fund 2017
2016 SG,” writes
5.79 a user of the 2016
2018
6%
50%
exchange-traded derivative services,
2017 which range
5.22 across more managers
5.79
5.22
5.47
PROFILE OF RESPONDENTS
Americas
22%
than 125 markets. A client thinks
both
the
fixed
income
and
2018
5.47
foreign exchange services are expensive (“The pricing for this Europe and
61%
service is off market,” he says of Respondent
both), and profile
the score in neither Middle East
By
size
By location
Asia
17%
Small
fund
field is strong. A respondent adds
that
he “would
44% like to see Soc
managers
Gen use CLS for clearing of some
of the non-vanilla FX curren-
6% scores by service area
Weighted average
17%
22%
cies that do clear through CLS.” Medium-
On the financing side, there is
50%
sized fund
Americas
Large
praise for the way in which Societe Generale helps clients write
Weighted 44% +/- the
managers
Europe and
more business. “The risk team understands
our business well Service area average
Medium
global
Large fund
6%
Middle East
50%
and works closely with us to set managers
appropriate limits
for our activi-
score
average
Small
Asia
ty,” says one respondent.
Capital
Americas
22%
61%
4.99
-7.0%
But there is no persuasive evidence
Europe in
and the detailed scores that introduction
61%
s
Middle
Societe Generale is saving clients
cash East
or collateral through
Asia
17%
better-informed margin management.
“Sometimes
we need to Client
5.82
-3.2%
point out parts of our portfolio that should be offset for VaR and service
10.6%
average scores by service area Consulting 17% 6.48
margi n purposes so that we get Weighted
better offsets
and credits,” writes
22%
Weighted average
Operations
5.75 scores -3.7%
a client. “It feels like we are doing the job for this team at times.”
Technology
5.05
-9.8%
Weighted
+/- the
2016
2017
2018
This may reflect technological shortcomings.
The bank global
does not
Service area
average
Product 5.79
5.22
5.47
score well for technology. One client describes
the technology
4.91
-9.9%
score
average
development
as “really `80s – poor and unreliable.”
Capital Another notes that “until
61%
[a] couple of years, we are waiting
for the close-out
into -7.0%
the
4.99
introduction
Risk
5.20 scores by
-6.7%
[proprietary reporting] platform s [Newedge] Pulse.” Even a third
Weighted average
service area
management
Client and direct access does an
client, who says, “The IT connectivity
5.82
-3.2%
Service
area
Weighted average +/- the global
service data issues. On the people Asset safety
5.60
-2.4%
excellent job for us,” has experienced
score
average
Consulting
10.6%
Sales and
side, there is evidence of turnover.
One client 6.48
name-checks
6.13
0.0%
Operations
5.75
-3.7%
Capital
introductions
4.99
-7.0%
his current reps for doing “a great job servicing our account,” marketing
Trading Client
and service
-9.8%
5.82
-3.2%
5.22
-10.9%
but admits he still misses others Technology
who “looked 5.05
after our needs
execution
in their respective divisions.” In Product
operations, which is not the
Consulting
6.48
10.6%
4.91
-9.9%
development
highest-scoring area for the bank,
a client has noticed improve-
Operations
5.75
-3.7%
ment. “There was a period where they were under-staffed, and it
Risk
Technology
5.05
-9.8%
was frustrating because we had many operational
5.20 problems
-6.7% that
took a long time to get resolved,” management
he writes. “Things are better
Product development
4.91
-9.9%
Asset
safety where
5.60 we were
-2.4% un-
lately. There was a period of staff
turnover
Risk management
5.20
-6.7%
Sales and problems. We considered
der-served, and we had many clearing
6.13
0.0%
Asset safety
5.60
-2.4%
marketing
moving our business at that time.
Things are better now.”
Trading
and
Sales
and
marketing
6.13
0.0%
All of that said, Societe Generale is scoring well
5.22 for client
-10.9%
service, though one respondent execution
has noticed promises outweigh
Trading and execution
5.22
-10.9%
delivery. “They try hard for us and are responsive,” he writes.
Delta 1, swaps and financing
5.51
-3.7%
“But it does take a long time to get approvals for new products/
Stock borrowing and lending
5.32
-10.9%
services from senior management.” This helps account for the
Foreign
exchange
prime
brokerage
4.86
-14.2%
weaker score in product development (where prime brokers are
assessed on the creativity of their solutions to client problems).
Fixed income
4.98
-13.7%
Societe Generale will also want to do better in stock borrowing
OTC clearing
6.21
6.2%
(where it has in theory got access to a massive global inventory,
Listed derivatives
5.95
1.1%
particularly on the equity side) and capital introductions (which
matters because Societe Generale, unlike many prime brokers,
Total
5.47
-5.7%
90
Global Custodian
The Hedge Fund Annual 2018