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A prime broker is the business division of an [[Investment Bank]] that looks after [[hedge fund]]s. It usually provides the following services: | |||
*'''Consulting''': Helping a nascent hedge-fund get off the ground: setting it up, finding offices, hiring people, engaging lawyers, recommending (cough) [[prime broker]]s, and [[capital introduction]] - the tricky business of putting investors and investment managers together without looking like it was anything to do with you. | |||
*'''[[Custody]]''': looking after the Hedge fund's "long" investment portfolio | |||
*'''Bank accounts''': running a multicurrency cash account | |||
*'''Settlement facility''': lending the hedge fund the assets it needs to settle [[short sale]]s, and lending it the money it needs to buy assets. | |||
*'''[[Synthetic prime brokerage]]''':providing the hedge fund with exposure to assets through derivatives (as an alternative to the hedge fund buying them outright). Often in the trade called "[[CFD]]"s. This may involve accepting [[give-up]]s from other [[executing broker]]s. | |||
*'''Swaps and ETD'''': Providing general swaps, futures, options and that sort of thing. | |||
===See also/Not to be confused with=== | |||
*{{aimfdprov|Depositary}} | |||
*[[Administrator]] | |||
See especially in the context of {{tag|AIFMD}}: [[Prime broker - AIFMD Provision]]. | See especially in the context of {{tag|AIFMD}}: [[Prime broker - AIFMD Provision]]. | ||
*Also [[Law of Property Act 1925]] | *Also [[Law of Property Act 1925]] | ||