Newedge calls it a day in Greece
28 May 2012 London
Image: Shutterstock
Prime brokerage firm Newedge is pulling out of the Greek market.
The broker, which is a joint venture between two banks, Société Générale and Crédit Agricole, is purportedly Europe’s seventh largest hedge fund prime brokerage business with more than $30 billion in client assets.
It has been reported that Newedge told its clients that it will cease extending margin loans for existing positions in Greek securities, and will only process sell orders.
The securities that are reportedly subject to the new restrictions include foreign-listed shares and American depositary receipts for Greek companies such as Alpha Bank, Coca-Cola Hellenic Bottling and Paragon Shipping.
The broker said that the decision to pull out of Greece is a part of its ordinary risk practices, which are aimed at minimising potential exposures proactively when the broker is concerned about potential issues.
The broker, which is a joint venture between two banks, Société Générale and Crédit Agricole, is purportedly Europe’s seventh largest hedge fund prime brokerage business with more than $30 billion in client assets.
It has been reported that Newedge told its clients that it will cease extending margin loans for existing positions in Greek securities, and will only process sell orders.
The securities that are reportedly subject to the new restrictions include foreign-listed shares and American depositary receipts for Greek companies such as Alpha Bank, Coca-Cola Hellenic Bottling and Paragon Shipping.
The broker said that the decision to pull out of Greece is a part of its ordinary risk practices, which are aimed at minimising potential exposures proactively when the broker is concerned about potential issues.
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