prime broker

(redirected from Prime Brokers)

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.
References in periodicals archive ?
10, 2015 /PRNewswire/ -- Hedge fund managers are experiencing the ripple effects of new regulations on banks and prime brokers, with hedge funds facing increased trading fees and broader changes to business relationships.
We are pleased to partner with UBS, one of the industry's premier bank prime brokers, to strengthen our market position,' said Anthony Brocco, chairman, Advanced Markets Ltd.
We expect significant growth in the equity derivatives and synthetic finance space in response to the regulatory pressures facing prime brokers and their clients.
The jury is still out on whether this investment strategy will be successful and this, plus the HIRE Act, which allows tax authorities worldwide to hunt down and prosecute firms using synthetics to bypass withholding tax of US share dividends, may well dampen enthusiasm among prime brokers if they suspect the investment is purely for tax purposes.
Currently, the settlement of hedge funds' trades between their executing and prime brokers occurs as OTC transactions without any CCP guarantee.
Leading US and European banks are engaged in intense competition for lucrative business in the hedge fund industry and this is pressuring margins and may be eroding credit controls, say senior prime brokers.
NYSE:BR) today announced the launch of its post-execution processing solution for prime brokers and investment banks.
The award recognizes ENSO's groundbreaking alpha-generating analytics, which is transforming the way that hedge funds and prime brokers communicate and exchange information, resulting in both improved return metrics and economics for both the fund and the dealer.
Prime brokers leading the initiative and covering execution in the regional markets include Credit Suisse and UBS.
BNY Mellon Alternative Investment Services, a unit of Bank of New York Mellon Corporation (NYSE: BK), has launched a new service that independently validates a hedge fund's position records to third-parties - prime brokers, custodians, trustees and agent banks - and independently verifies the pricing of that fund's securities.
com/research/913b1d/when_prime_brokers) has announced the addition of John Wiley and Sons Ltd's new book "When Prime Brokers Fail: The Unheeded Risk to Hedge Funds, Banks, and the Financial Industry" to their offering.
The increase reflects both growth in overall hedge fund assets under management (AUM) as well as lower levels of borrowing from prime brokers.