Deutsche Bank has responded to issues raised by the collapse of Lehman Brothers with the launch of a hybrid custody and prime brokerage platform, in partnership with BNY Mellon.

The platform, DB Integrated Prime Custody, allows hedge funds to put unencumbered assets that were typically held within their prime brokerage in a separate custody account held at BNY Mellon. Clients will also be able to choose other custodians according to Deutsche Bank co-head of European prime finance and global head of securities lending Anthony Byrne.

Initially the platform has been launched in London for European clients. Byrne said a US launch would take place in 2010 and that a number of US clients had expressed interest in the offering.

Byrne said advice on the platform's structure had been taken from PricewaterhouseCoopers (PwC), including the team handling the administration of Lehman Brothers International Europe.

The UK High Court has already heard several cases involving the segregation of hedge fund assets by Lehman.

Deutsche Bank also sought advice from law firms Clifford Chance and Hengeler Mueller and other industry experts on the platform's structure.

Byrne said: "What we're trying to do is in a post-Lehman environment allow clients in a very operationally efficient manner to hold unencumbered assets in a separate custody account."

He told Hedge Funds Review that thanks to report reconciliation and other operational features of the platform clients would not have the operational burden of dealing with separate service providers. "It really does feel like you're working with one portal and therefore one organisation," said Byrne.

The platform would best suit funds with a large proportion of unencumbered assets and many of those that had already signed up were long/short equity funds.

Byrne said Deutsche Bank was comfortable that the system would stand up to the toughest scrutiny and due diligence. The model had been tested by the PwC risk assurance group and will gain the auditing standard SAS 70 certificate in early 2010 which certifies  the bank's internal processes and controls have been thoroughly audited.

He said the platform's launch was a step forward in the post-Lehman environment and it was important for prime brokers such as Deutsche Bank, investors and managers to learn from "every single lesson" of the financial crisis.