Quote from bone:
Big orders get done OTC as block trades. A good OTC broker is very discreet and does not trade their own accounts. Tradition FS or Garban/ICAP come to mind.
Circumstances Under Which ICAP May Act as Principal and its Handling of Any Resulting Positions
Because ICAP acts as a broker, it is the beneficiary of a waiver of certain capital requirements to which it would otherwise be subject under the supervision of the UK Financial Services Authority. In order to satisfy the requirements of the waiver, ICAP must adhere to certain restrictions on its risk-taking activities. As a result, ICAP does not engage in proprietary trading, i.e., it does not systematically initiate or carry positions for its own account solely for the purpose of putting the firmâs capital at risk or to earn a profit based on a view of the market. ICAP therefore does not operate a âtrading book.â
However, ICAP may and does from time to time, consistent with the requirements of the waiver, acquire unmatched positions as principal in the following scenarios:
When facilitating customer transactions in âmatched principalâ marketplaces by framing markets. When framing markets in âmatched principalâ marketplaces, ICAP posts or provides live, executable bids and offers at minimum acceptable quantities in an effort (i) to display appropriate markets where none exist, or (ii) to present spreads that are more reflective of market sentiment. In such cases, ICAPâs efforts are intended to add liquidity for ICAP customers and to attract market participants to its screen. Sometimes the act of posting or providing quotations may result in ICAP acquiring a position as principal on an unmatched trade;
As a result of errors or out trades. From time to time, as a result of a bona fide error, ICAP may in âMatched Principalâ or exchange-based âName give upâ marketplaces acquire a position in resolution of such error; and Facilitating and executing orders on behalf of customers prior to those positions being novated, given-up or settled by the relevant customer(s) and/or for the purposes of gaining the customer(s) access to any applicable clearing and settlement system.
http://imd3.us.icap.com/trader/practices.html
I was surprised when I stumbled upon it a year ago.
