LONDON/NEW YORK (Reuters) – U.S. financial services firm Cantor Fitzgerald plans to expand its prime brokerage operations in Europe and has hired Sean Capstick in London to lead the efforts, two sources with knowledge of the matter told Reuters.

Capstick, most recently the London-based head of prime brokerage at Global Prime Partners, and formerly at hedge fund firm RWC, Bank of America Merrill Lynch, Deutsche Bank, Morgan Stanley and Goldman Sachs, starts his role in May as head of European prime brokerage.

Capstick will report to global unit head Jon Yalmokas.

Prime brokers provide a range of services to hedge funds such as financing trades, lending stocks and introducing them to potential investors.

The move follows the introduction a year ago of European Union rules that have led to large investment banks focusing on their larger hedge fund clients, creating space for Cantor and others to capture the business of smaller funds.

Separately, Cantor hired Michael Fitzgerald in New York as head of equity prime services origination, one of the sources said.

Fitzgerald’s LinkedIn profile confirmed he had started at the company in March and was most recently chief executive of the Digital Asset Custody Co. Prior to that he was chief operating officer at Ararat Capital.

News of the European expansion was first reported by Hedge Fund Alert.

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