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CASS 9.2 Prime broker's daily report to clients

CASS 9.2.1R
  1. (1)

    1A firm must make available to each of its clients to whom it provides prime brokerage services a statement in a durable medium:

    1. (a)

      showing the value at the close of each business day of the items in (3); and

    2. (b)

      detailing any other matters which that firm considers are necessary to ensure that a client has up-to-date and accurate information about the amount of client money and the value of safe custody assets held by that firm for it.

  2. (2)

    The statement must be made available to those clients not later than the close of the next business day to which it relates.

  3. (3)

    The statement must include:

    1. (a)

      the total value of safe custody assets and the total amount of client money held by that prime brokerage firm for a client;

    2. (b)

      the cash value of each of the following:

      1. (i)

        Cash loans made to that client and accrued interest;

      2. (ii)

        securities to be redelivered by that client under open short positions entered into on behalf of that client;

      3. (iii)

        current settlement amount to be paid by that client under any futures contracts;

      4. (iv)

        short sale cash proceeds held by the firm in respect of short positions entered into on behalf of that client;

      5. (v)

        cash margin held by the firm in respect of open futures contracts entered into on behalf of that client;

      6. (vi)

        mark-to-market close-out exposure of any OTC transaction entered into on behalf of that client secured by safe custody assets or client money;

      7. (vii)

        total secured obligations of that client against the prime brokerage firm; and

      8. (viii)

        all other safe custody assets held for that client.

    3. (c)

      total collateral held by the firm in respect of secured transactions entered into under a prime brokerage agreement, including where the firm has exercised a right of use in respect of that client's safe custody assets;

    4. (d)

      the location of all of a client's safe custody assets, including assets held with a sub-custodian; and

    5. (e)

      a list of all the institutions at which the firm holds or may hold client money, including money held in client bank accounts and client transaction accounts.

CASS 9.2.2G

2Where a firm has entered into an agreement with a client under article 91 (Reporting obligations for prime brokers) of the AIFMD level 2 regulation, and to the extent that the firm makes available to the client the same statements as specified by that article that it is required to provide to the relevant depositary, the FCA will treat the obligations under CASS 9.2.1 R as satisfied by the firm.