One of the more intriguing developments of the summer, with potentially far reaching implications, was the emergence of Fidelity as a bidder in the battle to buy ABN AMRO's prime brokerage business. In the end Fidelity dropped out, leaving the way open for UBS to buy the business for $250 million. But the fact that Fidelity was involved at all signals a potential seismic change in the prime brokerage business.
It suggests that prime brokerage may not remain the cosy preserve of investment banks for much longer. Many different types of financial institution seem to have an interest in