What is he the main broker?
Prime Broker is a brokerage or brokerage company that offers some clients special services. These clients often include hedge funds, stock specialists and other money administrators. What these clients have in common should be able to borrow securities or funds in everyday business. Most large investment banks offer these clients the main brokerage services. In principle, operational support means that the main broker acts as an agent between the client and all other brokers. The broker can do it because of the director of global custody. This means that the main broker holds clients' assets on their name and also provides a centralized means for closing transactions and for asset operation.
Every client of the main broker will have certain technological needs related to the management of its portfolio. They can be as simple as everyday statement or complicated as a portfolio report in real time and the client must work closely with the main broker toHe ensured that his needs would be met. Some major brokers offer a more specialized service for certain clients. For example, the main broker can also be in the field of leasing office space for locking funds and also includes on site services. Among them may be risk management and consulting services, especially if the hedge fund has just started operation.
Increased popularity of securing funds has led to a higher level of competition among the main brokers in recent years and has become an important presence in the world of finance. Clients gain a number of practical advantages of using the main broker. Prime Brokers usually earns money through the financing they provide, as well as through fees for the item to allocate transactions.
The concept of the main brokerage originated in the second half of the 20th century and is still evolving. When the main brokers first appeared, it was immediately seen that they provide huge benefits over the old system where the act of an actIV included tiring monitoring of the performance of each transaction. In this way, the main brokers allowed to increase Hedge funds and be more profitable than they could otherwise be. There is a risk to the initial brokerage, but this risk is carefully managed and preparations for side effects on the market are made as an essential part of business.