A friend of mine is thinking of starting up as an introducing broker. We have a friend in common that runs a successful HF, and he wishes to raise funds for this firm, and perhaps a a few other HF managers we know. I may well eventually join him. Regulations aside, what needs to be done? He is looking to start and grow a business. Does he need to hold clients' funds himself with a prime broker, or can he operate as a middle-man, without holding funds? Any advice (or questions) would be gratefully received.
You may find something useful in the the classified ads at the end of Futures Magazine for primary clearing firms that sponsor IB's.
Will he be guaranteed or not? Who will be clearing his business? IB's generally don't raise money for hedge funds and not sure if its even possible. You can PM me if you want.