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Quantitative Finance · Glossary

What is Prime services?

Definition 2.11 Markets I: The Ecosystem and Exchange-Traded Markets · Chapter 2 — The Sell Side

Prime services is the bank business that finances hedge funds: it lends them cash against their long positions, lends them securities to sell short, holds and settles their portfolios, and is paid a spread on every balance. Chapter 6 takes it apart.

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