Jun-7-2006 - Credit Suisse announced on Monday that it is teaming up with front- and back-office systems provider Paladyne Systems to provide the investment bank's hedge fund clients a technology platform capable of supporting multiple prime broker relationships.

The agreement will allow Credit Suisse to offer hedge funds an integrated, multiprime solution that will enable managers to operate and grow their businesses "based on evolving needs without the constraint of a 'single-prime' technology platform that restricts funds to one prime broker," the companies said in a joint statement.

It also marks one of the first efforts by a major investment bank to allow clients to operate with more than one prime broker—something many investment banks and brokerages have been loathe to do for fear of losing their hedge fund clients to the competition.

"Paladyne's fully hosted technology solution will enable Credit Suisse to provide our clients the first 'out of the box' technology platform that integrates front, middle and back office capabilities," said Philip Vasan, managing director and head of prime services at Credit Suisse.

"Many hedge funds perceive they are locked into a single prime broker relationship due to technology," said Paladyne's chief executive Sameer Shalaby. "The Credit Suisse-Paladyne solution frees them to be truly independent of any one prime broker."

Credit Suisse clients will have access to both the Paladyne technology platform and to existing Credit Suisse infrastructure. The Paladyne alliance also positions Credit Suisse to respond to the growing demand for outsourced middle and back office services to hedge funds.

Paladyne and Credit Suisse are currently integrating Paladyne's multi-asset order routing tools, which will direct orders to any client-specific counterparty or to Credit Suisse's existing trading and execution platforms. The joint platform offering is expected to be up and running later this year.

Credit Suisse's parent company, Credit Suisse Group, is a global financial services company headquartered in Zurich. Paladyne Systems develops and distributes technology and software suites designed to streamline hedge fund operations while providing business efficiency and cost savings.