Prime Brokerage Agreement

Summary

The Prime Brokerage Agreement sets forth the terms on which the Prime Broker is prepared to act on behalf of the hedge fund as clearing agent to clear and settle the fund’s securities trades in an account maintained for the fund at the Prime Broker, and to grant margin loans and securities loans to the fund. As would be the case with the initial draft proposed by the Prime Broker, this is a pro-Prime Broker agreement. This template includes practical guidance, drafting notes, and alternate clauses. For more content about margin lending, see Margin Lending Resource Kit. For additional information on prime brokerage services, see: • Regulation of Hedge Funds and Their Trading Activities • Hedge Fund and Its Offering: Drafting and Reviewing the Key Documentation • Hedge Funds Structure and Organization • Private Placement Memorandum (Hedge Fund Limited Partnership Interests) (DE) • Investment Management Agreement (Offshore Hedge Fund)