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adannenberg
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Joined: July 14th, 2002, 3:00 am

Equity Prime Brokerage Rates

November 7th, 2005, 4:33 pm

Can anyone comment upon their rates? In particular: 1) What spread do you pay between the margin rate on money you borrow to pay for your longs and the short rebate rate you receive on the proceeds of short sales? 2) Also, do you lend out your longs, or are they held in a segregated account, or does the Prime receive the full benefit from lending out whatever hot stocks you happen to have longs in?
 
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dingding
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Joined: October 22nd, 2005, 3:23 am

Equity Prime Brokerage Rates

November 8th, 2005, 1:25 am

what is margin rate? what is shorte rebate reate?a bit confusedwhat is " have longs in"?Sorry, I know these are a little silly questions
 
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Anthis
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Joined: October 22nd, 2001, 10:06 am

Equity Prime Brokerage Rates

November 8th, 2005, 6:02 pm

Dont litter someone else's thread.... If you have questions start your own thread somewhere else...
 
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Errrb
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Joined: December 17th, 2002, 4:18 pm

Equity Prime Brokerage Rates

November 8th, 2005, 8:28 pm

1) I think spread around 10-50 bps would be typical. If you are a hedge fund, the deal that you get from a primary broker depends on the volume that you trade, your credit rating etc.2) If you trade using margin account, which is typically the case, your securities can be lended by your primary broker without even informing you. If you suddenly decide to close your long position which was lended to other client of your primary broker and primary borker can not locate the same shares somewhere else, this other poor guy will be "short squeezed"Does it answer your question?
Last edited by Errrb on November 7th, 2005, 11:00 pm, edited 1 time in total.