In a significant move to bolster its prime brokerage division, investment bank Jefferies has appointed a seasoned executive from rival firm Cantor Fitzgerald. Ben Ashwell has been named as the new global head of outsourced trading, a strategic hire aimed at expanding the bank's services for hedge fund and asset manager clients.
A Strategic Hire for Jefferies' Prime Brokerage Ambitions
The recruitment of Ben Ashwell represents a clear statement of intent from Jefferies. Ashwell joins after a notable tenure at Cantor Fitzgerald, where he served as the head of European equity trading. His deep expertise in both execution and the specific demands of outsourced trading models makes him a key asset for Jefferies' growing platform.
Outsourced trading has become an increasingly vital service, allowing asset managers to delegate their trading desks to external specialists. This enables firms to reduce costs, access advanced technology, and navigate complex global markets more efficiently. By appointing a dedicated global head, Jefferies signals its commitment to capturing a larger share of this competitive market.
Ashwell's Role and Industry Context
In his new role, Ashwell will be tasked with leading and expanding Jefferies' outsourced trading business on a worldwide scale. He will report directly to the heads of global prime brokerage and global equities, indicating the high-level importance of this function within the bank's structure.
The move comes during a period of intense competition among investment banks and brokerages to provide comprehensive prime services. These services, which include financing, securities lending, and outsourced trading, are crucial for attracting and retaining lucrative hedge fund clients. Jefferies has been actively building out its prime brokerage capabilities in recent years, viewing it as a core growth area alongside its established equities and fixed income businesses.
Implications for the Competitive Landscape
This hire is more than just a personnel change; it is a strategic play in the ongoing battle for prime brokerage dominance. Luring a top executive from Cantor Fitzgerald, a firm with a strong reputation in trading and prime services, demonstrates Jefferies' aggressive growth strategy. Ashwell's insider knowledge and client relationships will be invaluable as Jefferies seeks to differentiate its offering.
The focus on outsourced trading specifically highlights a shift in how asset managers operate. Regulatory pressures, technological costs, and the need for best execution are driving more firms to consider outsourcing. Banks that can provide a seamless, global, and technologically advanced outsourced trading solution stand to gain significant business.
For the London financial sector, this appointment reinforces the city's role as a central hub for prime brokerage and equity trading innovation, despite broader geopolitical and economic challenges. The talent war between major firms continues, with experienced professionals like Ashwell being highly sought after.
