Increase Liquidity through a Prime Broker

Discussion in 'Order Execution' started by thomas3133, Jul 9, 2011.

  1. Hello,

    I would like to trade a large amount of spreads of a relatively illiquid long-term options and I encounter problems in getting my order filled. It should be noted that such options have open interest of tens of thousands contracts but the volume is pretty slight.

    I currently trade through a retail account in one of the online discount brokers and I thought that I may use the services of a prime broker just to increase the chances of my order getting filled (I understand that prime brokers can find a party that is willing to fill my orders even when I cannot get fills in the ordinary electronic option markets).

    However, I understand that there is a minimum equity requirement that a customer must deposit with a prime broker in order to open an account which is much higher than the minimum equity requirement for a retail trader due in part to the ceratin features and relieves that may be granted to a trader which operates through a prime broker (such as portfolio margin or other margin relieves, favorable shorting or lending features, etc.).

    However, I only need a prime broker's services to get my orders filled and not for any other relief; I can use my equity and margin requirements which I have in my current retail account and still implement the strategy successfully, only if I get fills on my orders. It should be noted that I would trade a large amount of contracts if I only get fills so that a prime broker may be interested to provide his services due to the large commissions.

    Do you think there are prime brokers who may provide such service to me even if I do not have equity of hundreds of thousands dollars? I would be happy to read your thoughts in this respect. Also, if you have any other suggestions for me please let me know. Thanks.
  2. lionline


    Sent you a PM
  3. NikEy


    would be great if there would be an adequate answer to this thread..
  4. A prime broker is not going to be interested in an account in the low 6 figure range.

    I'm assuming the OP has exhausted the capabilities of brokers like IB or Thinkorswim using RFQ for his spreads?