Dividend and Interest Accrual

Many trading firms, especially ones that are not self-clearing, use prime brokerages to maintain accounting books and records on the trading firm’s behalf. Accrual accounting is used: items are recognized when they are earned and expenses recognized when they are incurred. Because accrued-based accounting is used, in some cases accruals are set up in theRead more about Dividend and Interest Accrual[…]

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Copyright 2011 Eric Bank, Freelance Writer

25 Jan

Eric Bank Posted in Financial topics No comments

The Three Vital Prime Brokerage Reports

While all hedge funds require financing, some perform their own clearing operations, while others hire a prime broker to perform administrative tasks. In today’s blog, we’ll discuss the three main administrative reports that prime brokers provide to their clients who are not self-clearing.

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Copyright 2011 Eric Bank, Freelance Writer

10 Jan

Eric Bank Posted in Financial topics No comments

Securties Lending, Part One

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Prime brokers offer a variety of services to investors, from providing credit to clearing trades. One important service offered is known as Securities Lending. In Part One of this article, we’ll look at the contractual and collateral rules pertaining to Securities Lending.

As an investor or hedge fund, you may wish to borrow shares for a variety of reasons, such as shorting the stock or hedging a long position. An executed Securities Lending Agreement is the documentation required before shares are loaned. Continue reading “Securties Lending, Part One” »