Which brokers do most of the hedge funds execute their orders through?

Discussion in 'Order Execution' started by ginux, Apr 27, 2007.

  1. The very smaller hedge funds and investment advisors, actually do it.
    #21     May 4, 2007
  2. kjsnow25


    hedge funds don't need to use prime brokers. All they need is a fully disclosed account with any broker, where they execute with that broker and the funds reside at that broker or whoever that broker is an introducing broker to.

    F'rinstance, if you were executing at an execution specialist, but they cleared at say GSEC or Merrill, if they had an introducing broker arrangement, money would reside actually at GSEC or Merrill, but the executions would be "flipped" over back to that entity.

    Another scenario is where a fund executes "away" from their prime, and the trades are flipped over DVP.

    Funds need not have a prime if they don't need a ton of prime services. Those include financing, cap intro, office space, etc. All streams of revenue to the likes of Goldman, Morgan, Bear, etc. That's why you see these firms mentioned....because if they can do cap intro, provide a mark up so they can make money on spreads, mark up execution, mark up real estate, and mark up clearing, they have multiple sources of revenue from the client.

    SO, if you just need to execute, and have a relatively safe place for your balances, and don't carry big balances, there are plenty of places a fund can go just to execute. They don't need a prime.
    #22     May 8, 2007
  3. Question.

    If hedge funds don't need to use prime brokers, what am I missing in regards to Pat bryne's lawsuit against prime brokers?
    #23     May 14, 2007
  4. hutrader


    So I work at a broker firm in Hungary.
    How do I get in contact with those HF's who'd like to execute their orders trough me? I'm sure local brokers can give better pricing for executions than GS, JPM and so on.
    #24     Jun 7, 2011