Robert Akeson, chief operating officer of Mirae Asset
Securities (USA), says the firm will target "overlooked and
underserved" hedge funds in the US as it rolls out its prime
The New-York based unit, backed by South Korean financial
services giant Mirae Asset Financial, has been active in North
America for over two decades, mainly providing research.
However, the division is rolling out prime brokerage,
securities lending, repo, delta one and clearing businesses in
2017 as part of its parent company’s global
The expansion comes as some of the larger, traditional
bank-owned prime brokers are jettisoning less-profitable hedge
fund clients due to regulations which have forced them to
set-aside more capital.
Mirae Asset Securities (USA) received FINRA approvals to
operate prime brokerage services last month, Akeson told Global
Investor/ISF, and this week announced a partnership with
The tech firm is tasked with building a competitive
securities finance platform for Mirae's US brokerage operation
and will streamline trading, compliance and risk, middle and
back office services, securities finance, corporate actions and
"We’re in unique position given that we do not
roll-up to a bank holding company," Akeson said.
"Basel III doesn’t directly impact us, whereas
others have significant balance sheet restrictions and
shrinking capacity due to regulation."
Akeson says Mirae Asset Securities (USA) is an extension of
Seoul-based Mirae Asset Financial’s asset
Overall, the group had assets under management of $100bn,
wealth management-related assets of $203bn and insurance
services operations of $29bn.
"We want the world to know Korea’s leading
financial services firm has entered the prime brokerage
business in the US.
"We plan to offer our prime brokerage services to US-based
hedge funds under the $750m AUM bracket with long/short equity
strategies," Akeson added.
"Over time, this will extend to Europe."