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Prime Broker

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Prime broker
This refers to a large financial institution that offers services to large institutional clients or hedge funds. It is possible for a firm to have more than one prime broker. Importantly, the firm is not obligated to all of its business through the prime broker. The prime broker offers a variety of services which includes but is not limited to execution of trades, settlement, financing and custody.

Prime Broker
A broker-dealer on an exchange who maintains records and provides brokering services, including leveraged transactions, for other broker-dealers, money managers, hedge funds, and other major investors that trade on the same exchange.

prime broker
The broker-dealer who maintains a record of the orders executed by several broker-dealers for a particular institutional or professional trader.


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JP Morgan's creation of the Prime-Custody Solutions Group comes at a time when hedge funds are launching long-only funds and seeking structures that allow them to house certain assets with custodians, while traditional asset managers are executing long/short strategies that require financing through a prime broker.
In a Circular issued on 5 September 2008, the CSSF clarified the interaction between the prime broker and the custodian of a SIF.
 
 
 
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