{"id":44,"date":"2008-03-04T12:54:14","date_gmt":"2008-03-04T20:54:14","guid":{"rendered":"http:\/\/www.hedgeco.net\/hedgeducation\/hedge-fund-articles2\/prime-broker\/"},"modified":"2009-08-06T06:45:44","modified_gmt":"2009-08-06T14:45:44","slug":"prime-broker","status":"publish","type":"post","link":"https:\/\/www.hedgeco.net\/hedgeducation\/hedge-fund-articles\/prime-broker\/","title":{"rendered":"Prime Broker"},"content":{"rendered":"<p><a href=\"http:\/\/www.hedgeco.net\/serviceprovider.php\">Prime Brokerage <\/a>is the generic name for a bundled package of services offered by  investment banks to <a href=\"http:\/\/www.hedgeco.net\/hedgeducation\/hedge-fund-articles\/what-is-a-hedge-fund\/\">hedge funds.<\/a> The business advantage to a hedge fund of using  a Prime Broker is that the Prime Broker provides a centralized securities  clearing facility for the hedge fund, and the hedge fund&#8217;s collateral  requirements are netted across all deals handled by the Prime Broker. The Prime  Broker benefits by earning fees (&#8220;spreads&#8221;) on financing the client&#8217;s long and  short cash and security positions, and by charging, in some cases, fees for  clearing and\/or other services.<\/p>\n<p>The basic services offered by a prime  broker give a money <a href=\"http:\/\/www.hedgeco.net\/hedgeducation\/hedge-fund-articles\/hedge-fund-manager\/\">manager<\/a> the ability to trade with multiple brokerage houses  while maintaining, in a centralized master account at their prime broker, all of  the hedge fund\u2019s cash and securities. Additionally, the prime broker offers  stock loan services, portfolio reporting, consolidated cash management and other  services. Fundamentally, the advent of the prime broker freed the money <a href=\"http:\/\/www.hedgeco.net\/hedgeducation\/hedge-fund-articles\/hedge-fund-manager\/\">manager<\/a>  from the more time <a href=\"http:\/\/www.hedgeco.net\/services\/hedgefundhotels.php\">consuming and expensive aspects<\/a> of running a fund. These  services worked because they also allowed the money manager to maintain  relationships with multiple brokerage houses for IPO allocations, research, best  execution, <a href=\"http:\/\/www.hedgeco.net\/conferences\/conferences.php\">conference access<\/a> and other products.<\/p>\n<p><input id=\"gwProxy\" type=\"hidden\" \/><!--Session data--><a href=\"http:\/\/www.hedgeco.net\/hedgeducation\/hedge-fund-articles\/wp-content\/uploads\/2008\/04\/morgan_stanley_w_hotel.jpg\" title=\"The Morgan Stanley Building\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.hedgeco.net\/hedgeducation\/hedge-fund-articles\/wp-content\/uploads\/2008\/04\/morgan_stanley_w_hotel.jpg\" alt=\"The Morgan Stanley Building\" vspace=\"10\" width=\"200\" align=\"right\" height=\"350\" hspace=\"10\" \/><\/a> <input onclick=\"jsCall();\" id=\"jsProxy\" type=\"hidden\" \/> <input id=\"gwProxy\" type=\"hidden\" \/><!--Session data--><input onclick=\"jsCall();\" id=\"jsProxy\" type=\"hidden\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Prime Brokerage is the generic name for a bundled package of services offered by investment banks to hedge funds. The business advantage to a hedge fund of using a Prime Broker is that the Prime Broker provides a centralized securities clearing facility for the hedge fund, and the hedge fund&#8217;s collateral requirements are netted across all deals handled by the [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18,20],"tags":[31,30,29],"class_list":["post-44","post","type-post","status-publish","format-standard","hentry","category-18","category-managing-a-hedge-fund","tag-investment-banks","tag-prime-brokerage","tag-primer-broker"],"_links":{"self":[{"href":"https:\/\/www.hedgeco.net\/hedgeducation\/hedge-fund-articles\/wp-json\/wp\/v2\/posts\/44","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.hedgeco.net\/hedgeducation\/hedge-fund-articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.hedgeco.net\/hedgeducation\/hedge-fund-articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.hedgeco.net\/hedgeducation\/hedge-fund-articles\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.hedgeco.net\/hedgeducation\/hedge-fund-articles\/wp-json\/wp\/v2\/comments?post=44"}],"version-history":[{"count":0,"href":"https:\/\/www.hedgeco.net\/hedgeducation\/hedge-fund-articles\/wp-json\/wp\/v2\/posts\/44\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.hedgeco.net\/hedgeducation\/hedge-fund-articles\/wp-json\/wp\/v2\/media?parent=44"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.hedgeco.net\/hedgeducation\/hedge-fund-articles\/wp-json\/wp\/v2\/categories?post=44"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.hedgeco.net\/hedgeducation\/hedge-fund-articles\/wp-json\/wp\/v2\/tags?post=44"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}