SEC no-action letter relating to prime brokerage: Difference between revisions

SEC no-action letter relating to prime brokerage (view source)

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 ''But''.
-It does have a rather succinct description of what prime brokerage, for the most part, is. Made somewhat succincter, the JC reads the gist as follows:
+In a nutshell, the SEC no-action letter relating to prime brokerage of January 25, 1994 confirms that a cash trade executed by a customer with an executing broker for [[give-up]] to a [[prime broker]] does not violate the “free-rider” rule in [[Regulation T]]. In saying this, the no-action letter does have a rather succinct description of what prime brokerage, for the most part, is. Made somewhat succincter, the [[JC]] reads the gist as follows:
-{{quote|Prime brokerage is the process by which a registered broker-dealer clears and settles of securities trades for its customers. It involves three distinct parties: the [[prime broker]], the [[executing broker]], and the [[customer]].
+{{quote|[[Prime brokerage]] is the process by which a registered broker-dealer clears and settles of securities trades for its customers. It involves three distinct parties: the [[prime broker]], the [[executing broker]], and the [[customer]].
 The '''prime broker''' is a [[registered broker-dealer]] that [[Clearing|clears]] and [[Margin lending|finances]] the trades the customer has executed with an “executing broker” — another [[registered broker-dealer]] at the customer’s request.