Money Mavericks and Single Dealer Platforms

September 7, 2010

In Lars Kroijer‘s excellent Money Mavericks he describes executing his first trade after launching his hedge fund, Holte Capital in late 2002. It’s a $50K equity buy order, and his broker says “you do know this is only a 50 grand order, right ?” The broker goes on to suggest that his seniors won’t be happy with him handling such small orders. Lars finds the experience dispiriting, and starts to use his prime broker’s “cheap and electronic direct market access platforms” to execute.

So I guess one driver of single dealer platform flow is brokers at big firms dissing small clients who execute by voice !

About these ads

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s