Prime Broker Notification Clause Samples

Prime Broker Notification. Where Broker acts as an executing broker for Accounts that prime broker their securities away from BNYCS (a "Prime Brokerage Customer"), Broker shall notify BNYCS with respect to each account for which Broker intends to act as an executing broker and Broker shall be solely responsible for conducting its own credit review with respect to each such Prime Brokerage Customer. Broker shall promptly notify BNYCS, but in no event later than 5:00 p.m. Illinois time of the trade date, in a mutually acceptable fashion, of such trades in sufficient detail for BNYCS to be able to report and transfer any trade executed by Broker on behalf of a Prime Brokerage Customer to the relevant prime broker. Broker understands and agrees that if the prime broker shall disaffirm or DK any trade executed by Broker on behalf of a Prime Brokerage Customer, Broker shall, if it has not already done so, open a margin account for such Prime Brokerage customer in its range of accounts and shall transfer or deliver the trade to such margin account for the risk and expense of BNYCS to the same extent as for any account introduced by Broker pursuant to this Agreement. Broker understands and agrees that for certain Prime Brokerage Customers, BNYCS acts as both the clearing broker and the prime broker (the "Prime Broker"). BNYCS as the Prime Broker will not disaffirm or DK a transaction for Broker's Prime Brokerage Customers but will notify Broker that a problem exists and, as permitted under the SEC Letter, that it is unable to settle the trade. BNYCS as the clearing broker will request that Broker open a margin account for such Prime Brokerage Customer in Broker's range of accounts and transfer or deliver the trade to such margin account for the risk and expense of Broker to the same extent as for any account introduced by Broker pursuant to this Agreement. Broker understands and agrees that all transactions for its Prime Brokerage Customers shall be conducted in accordance with the requirements of any Applicable Regulations, SEC "no action" or interpretative letters or written policies, and rules or regulations governing prime brokerage transactions.