Prime Broker Business Information Model

The Prime Broker Business Information Model maps the data entities behind financing, custody, and execution services for hedge funds and institutional clients — from client and account structures through trade, financing, and margin activity. Entities are grouped into foundational, transactional, and informational layers, with the relationships between them documented, in an editable Word document.

Prime brokerage data breaks a standard client/account model almost immediately. The "client" is really three related entities — the fund, the investment manager who trades on its behalf, and individual sub-funds or share classes that each need separate position and margin treatment, with one manager often controlling several fund entities at once. A single block trade is executed once but allocated after the fact across multiple underlying fund and account entities, so the allocation has to exist as its own entity, separate from the execution. Securities lending adds a borrow/loan entity distinct from the underlying position, carrying its own collateral, rebate rate, and recall relationship, alongside a constantly changing locate/availability entity that has nothing to do with actual holdings. And when a trade is executed away and simply booked, cleared, or financed by the prime broker, the executing party and the carrying party are different entities tied together by a give-up agreement — something most generic trade models assume away entirely.

Inside the Document

• Foundational entities — funds, investment managers, accounts/share classes, instruments, counterparties
• Transactional entities — trades and allocations, stock loan/borrow, financing, margin calls, collateral movements
• Informational entities — exposure and margin reporting, locate/availability, performance reporting
• Entity relationships across the model, in an editable Word document

How It's Applied

• Reference for margin, financing, and collateral system data architecture
• Baseline for client, fund, and account master data hierarchies
• Guides integration planning across execution, clearing, and risk systems
• Starting point for modeling trade allocation and give-up relationships

Designed For

Relevant to data architects, business architects, and IT leaders at prime brokers, custodians, and fund administrators designing or integrating trading, financing, or risk platforms.