Robert Sackett
Wells Fargo Securities
Wells Fargo Securities is reinvigorating its securities finance system with fresh talent, and it’s looking for new growth opportunities. Robert Sackett explains

Wells Fargo is established in the securities lending space but relatively new to the prime brokerage sector. What growth potential do you see in this area?

The prime broker operating model is undergoing significant change brought about by the implementation of Basel III’s risk framework. This is causing many providers to reassess their business models to adapt to the new capital, liquidity and leverage rules which have had a fundamental change on the value proposition that prime brokers have brought to the firm’s revenue stream.

Many alternative asset managers have prudently begun to look at new liquidity providers that have capacity to provide these financial resources in order to ensure they can deploy their strategies. With the mounting regulatory requirements and the corresponding increased cost for prime brokerage services, Wells Fargo Prime Services, our prime brokerage business, is positioned to offer a value proposition based on our breadth of supply, capital base, strong credit rating and commitment to growing this franchise.

Wells Fargo has been on a significant hiring spree over the past year. Is this likely to continue?

Already known as a leading introducing broker, we ventured in 2014 to launch our self-clearing prime brokerage business. That naturally meant augmenting our existing staff of experienced professionals with those who could bring additional expertise with institutional clients to help us execute on our strategic vision.

We focused on adding to teams across sales, capital introduction, securities lending, client services, new business management, product development and risk functions. Many of the new hires have had long standing careers in prime brokerage and securities lending and have brought significant product expertise and client relationships to our franchise. We will continue to augment our hiring plans as our platform evolves and our client needs warrants.

The prime brokerage market already has some big names dominating the space. How is Wells Fargo looking to carve out its own market share?

Wells Fargo is committed to building a premier prime broker business. Our goal is to partner with our customers and work with them to help define our offering, while leveraging the breadth of financial products, solutions and expertise that exists across the Bank.

We partner closely with our sales and trading businesses including equities, fixed income, credit and asset-backed finance to leverage their product strengths and further institutionalise our alternative asset client relationships. In addition, we have market leading wealth management, private bank and retail businesses.

What are Wells Fargo’s primary strengths that it can offer its clients?

Wells Fargo Prime Services is a relationship-oriented business, and we have brought a world-class team together that is very focused on deepening relationships with clients. Clients appreciate the strength of brand and reputation, capital base as well as the commitment to growing our franchise.

Is Wells Fargo looking to expand into any new markets in the near future?

At Wells Fargo Prime Service, we are continuously evaluating our strategy, evolving to meet the needs of our clients, market environment and business.

Interviews
The latest interviews from Securities Lending Times
Features
The latest features from Securities Lending Times
Experts discuss the current state of the European securities lending market
Senior business analyst Gilbert Scherff and securities finance and collateral management marketing director Martin Seagroatt break down what will be required of SFTR and explain how Broadridge Financial Solutions can help
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Getting to the final technical standards may indeed just mark the end of the beginning, but it is a significant milestone on this particular road. David Lewis of FIS Global maps out the rest of the journey to be made
SIX Securities Service—through SIX Repo—is developing a new methodology based on the seamless sourcing and pooling of collateral. Head of repo and securities finance Nerin Demir explains
Calypso Technology pits the viable options for a quick fix against implementing a strategic long-term solution for growth, and investigates the possibility of combining these options for the optimal securities finance solution
Matt Wolfe, vice president of new products and business development at OCC, explains how the central clearer is enhancing its stock loan programme to better serve the market
Rob Chiuch and John Templeton of BNY Mellon Markets discuss the potential impact of allowing equities to be used as collateral in the US
Tracey Adams of Lombard Risk examines examples of three challenges faced by market participants caught up on the first wave of SIMM
Country profiles
The latest country profiles from Securities Lending Times
Being an exciting emerging market is all well and good, but how long can that status really apply before interest wanes? India is doing its best not to find out
Hugh Leonard, director of repo sales at Australia and New Zealand Banking Group, explains how the Australian market has excelled in recent years
Asset Servicing Times

Visit our sister site
for all the latest asset servicing news and analysis

assetservicingtimes.com
Securities lending is in a strong place in Australia. Dane Fannin, head of capital markets in the Asia Pacific at Northern Trust, explains the available opportunities
Federico Ortega Gilly of Mexico’s Nacional Financiera explains why his country’s securities lending market is ripe for foreign investment
Russia’s National Settlement Depository has had a busy year making its securities finance market more robust and attractive to outside investors. The CSD’s Alina Akchurina explains the innovations being implemented
South Africa’s securities lending industry is on the verge of embracing a modern T+3 settlement cycle that could boost the country’s market
Experts on Canada’s securities lending industry discuss the market’s qualities compared to others, finding it to be a strong source of HQLAs
A difficult end to 2015 has not deterred securities borrowers and lenders in Asia, where certain markets enjoyed significant growth and offered new opportunities