A service offered to hedge funds and other customers by securities house to support their trading, investment and hedging activities. The service comprises of clearing, custody, securities lending and financing arrangements. Effectively a non-stop banking service to eliminate the need for the hedge fund to have a large back office and multiple clearance relationships.
The Prime Brokerage service is aimed at leveraged and hedge funds providing fully integrated equity, futures, fixed income, foreign exchange execution and clearing products. It also includes custody of assets, consolidated position reporting, access to scarce equity and fixed income securities, competitive margin, collateral and financing terms.