UBS, the investment bank, has propelled itself to the upper echelons of the hedge fund services business by buying the US prime brokerage operations of rival ABN Amro for $250m (€218m).

ABN Amro has over 300 hedge fund clients and the deal propels UBS into the big league of the lucrative prime brokerage market alongside the likes of Morgan Stanley and Goldman Sachs, the two acknowledged industry leaders.