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 ?
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.
Although the industry has grown considerably, its investors still mostly consist of prime brokers and subsidiaries of hedge fund management companies.
UBS is among the five biggest prime brokers in Asia, which provide services to hedge funds.
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.
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.
Prime brokers leading the initiative and covering execution in the regional markets include Credit Suisse and UBS.
This is in direct response to hedge funds that are increasingly seeking to diversify counterparty risk while continuing to deal directly with their prime brokers.
Currently, the settlement of hedge funds' trades between their executing and prime brokers occurs as OTC transactions without any CCP guarantee.
The increase reflects both growth in overall hedge fund assets under management (AUM) as well as lower levels of borrowing from prime brokers.