A large bank or securities firm that give administrative and back office support to hedge funds and other professional investors.
a broker-dealer that, among other things, clears and finances customer trades made at other brokerage firms at the customer's request
An investment bank that services hedge funds in connection with their activities in the financial markets. Prime brokers offer the following services, among others: trading transactions, clearing and settlement, securities lending, help to set up hedge funds. See hedge associations.
A broker which acts as a settlement agent, provides custody for assets, provides financing for leverage, and prepares daily account statements for its clients, who are money managers, hedge funds, market makers, arbitrageurs, specialists and other professional investors.
Usually undertakes the back office functions of clearing, settlement and custody for a hedge fund, plus it often undertakes the execution of the shorting and leveraging activities.
A brokerage firm that provides bundled services to a hedge fund.
A large bank or securities firm that provides various administrative, back-office and financing services to hedge funds and other professional investors. Prime brokers can provide a wide variety of services, including trade reconciliation (clearing and settlement), custody services, risk management, margin financing, securities lending for the purpose of carrying out short sales, record keeping, and investor reporting. A prime brokerage relationship doesn't preclude hedge funds from carrying out trades with other brokers, or even employing others as prime brokers. To compete for business, some prime brokers act as incubators for funds, providing office space and services to help new fund managers get off the ground.
Provides services such as securities lending, leveraged trade executions, and cash management, among other things, to fund management firms.
The principal brokerage firm utilised by a hedge fund for clearing, settlement and custody. In addition it often undertakes the execution of any shorting and leveraging activities.