81,788
edits
Cash prime brokerage: Difference between revisions
Jump to navigation
Jump to search
no edit summary
Amwelladmin (talk | contribs) (Created page with "{{a|pb|}}Cash prime brokerage means normal margin lending activity where the prime broker lends its clients cash for them to buy equity securities, which the prime broker then...") |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 1: | Line 1: | ||
{{a|pb|}}Cash prime brokerage | {{a|pb|}}[[Cash prime brokerage]] describes the traditional [[margin lending]] activity of an [[equity prime broker]], where the [[prime broker]] lends its clients cash for them to buy shares which the prime broker then holds in custody for the client, or lends its clients shares so they can sell them short and raise cash, which the clients deposit with the prime broker. In both cases the client takes title to actual securities, with all the implications for stamp duty and shareholder reporting that this entails, even though the shares are often sold or rehypothecated away afterwards. Cash prime brokerage is also described as “[[normal prime brokerage]]” or “[[full prime brokerage]]”, to distinguish it from “[[synthetic prime brokerage]]”, which is [[prime brokerage]] as described above, only done with [[derivatives]], so the client never gets title to the shares. | ||
So: | |||
*'''[[Cash PB]]''': [[prime brokerage]] with actual [[shares]]; | |||
*'''[[Synthetic PB]]''': [[prime brokerage]] on [[equity swap]]s. | |||
{{sa}} | {{sa}} | ||
*[[Margin lending]] | *[[Margin lending]] | ||
*[[Synthetic prime brokerage]] | *[[Synthetic prime brokerage]] | ||