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 !