Prime Brokerage
Description
Prime brokerage is the name given to a business founded on offering bundled packages of products and services to
hedge funds. Prime brokerage products and services are provided by investment banks and large brokerage firms. In
broader terms, the prime brokerage business acts as a conduit between hedge funds and the marketplace.
The business benefits to a hedge fund of using a prime broker are that the prime broker offers a centralized securities
clearing facility for the hedge fund, and the hedge fund’s collateral requirements are netted across all deals handled
by the prime broker. The prime broker generates revenue by charging fees on the hedge fund’s long and short cash
and security positions. Other sources of revenue are the fees charged for clearing and/or other services. The course gives a key features of prime brokerage
is issued on the Luxoft Training form
Objectives
To provide the audience the understanding of the distinguishing features of prime brokerage, its role in hedge funds
activities, main services, business environment of prime broker.
Target Audience
Testers, System and Business Analysts, Architects, Developers, and Project Managers working on financial markets
projects
Prerequisites
FIN-001. Introduction into Financial MarketsFIN-004 Basics of Financial Markets. Cash Equities & Equity Derivatives
FIN-004 Basics of Financial Markets. Cash Equities & Equity Derivatives
FIN-005 Basics of Financial Markets. Fixed Income and Fixed Income Derivatives
FIN-020 Introduction into Investment Banking
FIN-036 Trade Lifecycle
Roadmap
Overview of Prime Brokerage & Hedge Funds
The Relationship Between Prime Brokers and Hedge Funds
The Prime Broker’s Business Environment
Foreign Exchange Prime Brokerage
Securities Lending