First New York enters prime services business

First New York Securities has launched EFX Prime Services to offer prime brokerage and related services to hedge fund managers.

EFX said it also planned to ramp up its activities as an allocator to hedge funds through its EFX managed accounts platform.

"EFX Prime Services is a natural extension of our premier trading and risk management infrastructure. With over 200 principal traders in all asset classes, we understand trading and have worked with external managers for years," said Donald Motschwiller, managing partner of First New York.

First New York has hired Brian Stutman to head its prime brokerage business. He was most recently co-head of Lighthouse Prime Services and was previously at RBC Prime Services.

EFX Prime Services will offer multi-prime capabilities and trading infrastructure to hedge funds and will acts as an introducing broker to four clearing banks: Goldman Sachs, JP Morgan, Merrill Lynch and Penson.

EFX Prime Services has hired Andrew Saunders to head its capital introduction program. He was previously a director at HedgeConnection.

EFX's first clients are expected to begin trading on February 1, 2010.