prime broker

Also found in: Acronyms.

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 ?
Currently, the settlement of hedge funds' trades between their executing and prime brokers occurs as OTC transactions without any CCP guarantee.
Prime brokers have suggested that hedge fund managers concentrate more business with them, though 60% of managers affected by repricing have in fact added more prime broker relationships.
The Harmony network now comprises over 80 executing brokers and 15 prime brokers globally, for give up processing, allocations and T-0 matching with buy side firms, facilitating tighter risk controls and improved client servicing.
Gloss' new capabilities allow prime brokers to offer full settlement services to buy-side investment firms and hedge funds, automating security and currency transaction processing, enabling firms to manage books and records in real-time and facilitating efficient asset servicing.
ENSO Color is a connective portal which enables prime brokers to send security specific color commentary and balance sheet reducing opportunities directly to clients.
With UBS as a prime broker, we will continue as a true prime of prime service provider with 100 percent STP model, committed to delivering elite service to our partners.
Prime custody' refers to the tailored servicing of unencumbered assets within alternative investment portfolios, performed by both prime brokers and custodians to provide greater transparency and risk mitigation.
According to Wall Street Journal, Switzerland-based Credit Suisse (NYSE: CS) and Germany-based Deutsche Bank (NYSE: DB) have topped the list in a prime broker survey.
NEW YORK -- Citi today announced its Prime Finance division was ranked second overall by hedge fund firms with at least $1 billion in assets in the 2009 Prime Broker Survey conducted by Institutional Investor magazine, a move up from Citi's 2008 position of number three.
In a breakdown of the type of services that attracted the hedge funds to their prime broker, the survey found that the technology/reporting function was the leading service (35%), followed by operations coverage/competency (30%) and execution rates (25%).
Premiere New Prime Broker nominated for Best Small Prime Broker of the Year and Best Capital Introduction Program for Small Prime Brokers by HFMWeek