Prime broker Prime brokers clear trades and provide leverage and short-term financing. They are usually divisions of large investment banks. The prime broker acts as a counterparty to derivative contracts, and lends securities for particular investment strategies, such as long/short equities and convertible bond arbitrage. It can provide custodial services for the fund's assets, and trade execution and clearing services for the hedge fund manager.
Prime broker Prime brokers clear trades and provide leverage and short-term financing. They are usually divisions of large investment banks. The prime broker acts as a counterparty to derivative contracts, and lends securities for particular investment strategies, such as long/short equities and convertibl,e bond arbi?trage. It can provide custodial services for the fund's assets, and trade execution and clearing services for the hedge fund manager.