What Are the Different Prime Brokerage Jobs?

The securities brokerage business refers to the business in which a securities company, through its securities business department, accepts the client's entrustment and acts as a client to buy and sell securities in accordance with the client's requirements. The securities brokerage business was born and developed with the implementation of the centralized trading system. Due to the large variety of securities traded on the stock exchange, and the large number of seats in the trading floor, ordinary investors cannot directly enter the stock exchange for trading. Therefore, the completion of the transaction can only be facilitated by a licensed securities broker as an intermediary. .

Securities brokerage business

Establishment of securities brokerage relationship

Extensive securities brokerage business

All listed stocks and bonds are the object of securities brokerage business. Therefore, the object of securities brokerage business is extensive. At the same time, because the specific object of the securities brokerage business is securities with specific prices, and the securities prices are subject to macroeconomic operating conditions, operating performance of listed companies, market supply and demand, social and political changes, investor psychological factors, and policies and regulatory measures of competent authorities A variety of factors affect and often change. The same securities will have different prices at different points in time, so the objects of the securities brokerage business also have the characteristics of price variability.

Brokerage business intermediary

The securities brokerage business is an agency activity. Securities brokers do not use their own funds to buy and sell securities, nor do they bear the risk of securities prices going up and down. Instead, they act as agents for the buyers and sellers of securities, and play a role in communicating between buyers and sellers. According to certain requirements and rules, the instructions are executed quickly and accurately, and the formalities are handled on the one hand, and at the same time, the buyers and sellers are allowed to act as the media for the transaction, so it has the characteristics of intermediation.

Authority of securities brokerage business

In the securities brokerage business, the client is the principal and the securities broker is the trustee. Securities brokers shall handle entrustment affairs strictly in accordance with the requirements of the principal. This is the primary obligation of the securities broker to the client. The client's instructions are authoritative. Securities brokers must strictly buy and sell securities in accordance with the securities, quantity, price, and effective time set by the client. Even if the situation changes, in order to protect the rights and interests of the client, the client must change the order. The client's consent must be obtained in advance. If a securities broker violates the client's instructions without cause and causes the client to suffer losses in the handling of the commission, the securities broker shall be liable for compensation.

Confidentiality of securities brokerage business

In the securities brokerage business, the information of the principal is related to the implementation of its investment decisions and the realization of investment profits, and to the vital interests of the principal. The securities broker is obliged to keep the customer confidential, such as the account number and password of the shareholder account and the capital account. Relevant matters entrusted by the client, such as what kind of securities to buy and sell, the time and price of buying and selling securities, the types and quantities of inventory securities in the client's shareholder account, and the amount of funds in the fund account. In the event of losses due to the disclosure of customer information by the securities broker, the securities broker shall be liable for compensation.