ESMA issued its ESMA Working Paper No. 2, 2014 on the systemic dimension of hedge fund illiquidity and prime brokerage. It analyses the financial intermediation chain established by hedge funds and prime brokers using a dataset covering the 306 largest global hedge funds and their prime brokers over the period July 2001 to December 2011. The study observes that this form of financial intermediation may be severely impaired in times of market distress and that this can be explained by the hoarding of liquid securities by prime brokers who are eager to avert runs by their clients.