Prime Broker

Back to Index

 
Definition:
A broker which acts as settlement agent, provides custody for assets, provides cash management, and prepares daily account statements for his/her clients, who are money managers, hedge funds, market makers, and other professional investors. The advantage of using a Prime Broker is that the Prime Broker provides a centralized securities clearing facility for the hedge fund, and the hedge fund's collateral requirements are netted across all deals handled by the Prime Broker.

 

Feedback