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Prime Services and Securities Lending Course Overview

The Prime Services and Securities Lending course aims to guide you to understand how the prime services team provides specialized services to help hedge funds make money and how securities lenders facilitate the shorting of stocks. Once you get started, you will comprehend how prime services (i.e., prime brokers) attracts investors, provides leverage, maintains margin requirements, performs clearing and settlement functions, offers custodial services, and produces real-time reporting for their hedge fund clients. Next, you will cover the securities lending function, where you will understand what securities lending is and identify key differences between short-sellers, stock lenders, and long-sellers. You will recognize how and why market participants may ‘short’ stocks. As short-selling is crucial to the stock market, we will analyze short-selling activity using multiple short equity metrics such as short interest and short interest ratio on Refinitiv Workspace screen.  

Finally, as mentioned earlier, securities lenders are essential to facilitate short selling. You will examine securities lending transactions using examples with a hedge fund manager who is bearish on a stock and wants to borrow a stock to short, a securities lender who will facilitate the borrow, and a long-only asset manager who will lend the stock. In this process, you will also see the distribution of borrow fees and various security lender models.

Prime Services and Securities Lending Learning Objectives

By the end of this course, you will be able to:
  • Understand what prime services is and how it fits within a bank
  • Describe the range of prime services activities
  • Recognize how and why market participants may ‘short’ stocks
  • Comprehend how securities lending works and who are the market participants
  • Calculate the cash flows involved in securities lending
Securities Lending



Who Should Take This Course?

This Prime Services and Securities Lending course is perfect for anyone looking to build a complete understanding of capital markets. This course is designed to help those interested in careers in prime services, securities lending, hedge funds, portfolio management, and other sell-side trading careers. This course explores concepts useful for beginner and intermediate level capital markets professionals or business and finance students seeking to better understand securities lending transactions.

Prime Services and Securities Lending

Get Started

Level 2

Approx 1.5h to complete

100% online and self-paced

Get Recognized With CFI

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What you'll learn

Qualified Assessment
Midway Check-In
Course Summary

This Course is Part of the Following Programs

Why stop here? Expand your skills and show your expertise with the professional certifications, specializations, and CPE credits you’re already on your way to earning.

All Capital Markets & Securities Analyst (CMSA)® Courses
Prime Services and Securities Lending is part of the Capital Markets & Securities Analyst (CMSA)® certification, which includes 42 courses.
  • Skills Learned Trading strategies used in the finance and capital markets
  • Career Prep Work in capital markets, whether on the buy-side or the sell-side

Learner Reviews

A good course for Prime Services and Securities Lending
It is useful for all kinds of learners to learn the updated course of Prime Services and Securities Lending.

Kwong Sang Yeung

This course has been very helpful in providing more clarity on the services offered by prime brokers.

Nkafu Njem

Prime Services and Securities Lending
Really enjoyed this module; a good simple high level overview of why Prime Services exist and the purpose mechanics of lending securities.

Darren McLaughlin

A great course to look after the Introduction to Hedge Fund Fundamentals.

Manoj Kumar P

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Frequently asked questions

What are the requirements to take the courses?
All of our certification programs are open to students and professionals in various industries and levels of experience. Our curriculum is designed to teach what you need to know from basic fundamentals to advanced practical case studies. To take the courses and complete the exercises, students will only need access to a PC and/or Mac, Microsoft Suite (2016 or newer), and a stable internet connection. Click here to view the Technical Requirements
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Absolutely! All the files and templates needed in a course are available for download. Just look for a module that shows Downloadable Files within the course dashboard. See here for a visual guide on how to do this.
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Students must complete all the video lessons, quizzes, and final assessments in each course. You can retake the assessments as many times as necessary until you reach an 80% passing grade. For more information on how to earn a course certificate, click HERE.
How are the exams conducted?
Students are required to complete an online assessment (Multiple choice questions, Fill-in-the-Blanks, and Excel Questions) at the end of each course. You can take the exams on your own schedule and will need to earn at least 80% to pass the course and earn your certificate of course completion. Please note that course exams can be repeated as many times as you need. Students are also required to complete the FMVA® final exam to earn their certification. How to Take a Qualified Assessment
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While the courses are designed mainly for self-study, we are happy to provide email assistance for general or technical support inquiries. The Full Immersion bundles include a premium email support function that allows you to communicate directly with in-house experts regarding course content. This is one of the key features that sets the Full Immersion bundle apart and makes it a worthwhile upgrade over the more affordable self-study bundle. You can compare more features in our bundles here.
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Based on hundreds of reviews from thousands of students we know how CFI courses have helped so many people advance their finance careers. Our courses are designed to be extremely practical and simulate the experience of being trained as a professional financial analyst…the ultimate way to advance your career. For real-world examples and to help delve even deeper into the course concepts, please look into our free career resources library.
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