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It's your money. If you want to go after institutional investors then you will need the whole deal...accountants, lawyers (unless you are one yourself), administrators, auditors, compliance people, etc. Post-Madoff, most of these investors also look at the quality of the support you use, so...

You need to have a significant amount of AUM under management to attract those kinds of clients. I wouldn't worry about it if you are just starting out on a small account. But, in general, yes.

My impression is that the OP doesn't have the capital to hire an administrator right off the bat. If you give someone direct access to your IB statements then that should take care of the issue of statement validity (non-trading access to your account). If you are merely looking for capital...

I'm not clear why you want/need to set up a "hedge fund". If you want to create a track record using personal funds only just hire an auditor and have them go through your statements. Ideally, you should find an auditor you might want to use and ask them beforehand what their requirements are.

You give your auditor access to your IB statements and that's that.

Do a little research on credit derivatives (i.e. Google it ) and all your questions will be answered.

Sell your ETFs and hold cash.

Thanks. Good to know.

So is it the case that they absolutely won't do give-ups anymore?

At any given point in the life of the contract one bond in the deliverable basket will be the cheapest-to-deliver (if you had to deliver a bond to someone, and you had a choice, you would deliver the one that would cost you least, right?). CTD is influenced by a number of things, such as current...

Just call the NFA directly. They are very helpful.

edit Please look at the futures again. They do not deliver a basket, rather they will deliver a bond, which will be the cheapest-to-deliver. In any case, you will not care about that as you only need exposure to the instrument, not the instrument itself. You are going to need someone that...

When I was looked in to this (a few years ago) they told me they would do it. However, I had to press them to get that information, and they imposed a minimum commission hurdle per month (I think it was $900). In today's regulatory environment it would not surprise me that they would now...

Hedge based on delta. However, why are you hedging a linear instrument with a nonlinear one? Why a don't you just sell some GBP?

July CL 48 delta call 29.96iv July CO 47 delta call 25.93iv July XB 48 delta call 25.68iv July HO 48 delta call 22.55iv

So following your comment, shouldn't vol on the distillates be higher than crude? Seems the other way around here, or is this normally the case and these numbers are off (either wrong or not indicative of the normal relationship)?

I'm not an energy guy, but perhaps this is the way that intermarket volatility is supposed to be? Have you looks at these relationships in comparison to where they have been historically?

Since it is an option on a future you should use Black 76. If you do a search there is a recent thread where the process of calculating iv is discussed.

Lime Brokerage. They specialize in hft access. Account minimum is around 500k, i think.

Not trolling in the least. I would think that a study of this type would be more rigorous than some random replies by people who may or may not have any real connections in the hedge fund world. BTW, I was interviewing for an intern a couple of years ago and one asked a similar question. As a...