Prime Broker

Quote from NanoTick:

Can someone please explain what prime borker is?
What does it do that a retail broaker does not do?
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Yes someone please explain.. what exactly a "prime broker" provides that a discount broker cannot.

isn't this just the "hedge fund service provider industry" trying to justify their means like a "full service" broker at Smith Barney charging insane fees to sell 100 shares of stock in exchange for the "personalized service" they provide.
 
Quote from jumper:

that link from loik has a detailed explanation. the main purpose for this thread is the trade away benefits.
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Pardon me if this is ignornant but what the heck is a "trade away" benefit?? A give-up agreement?
 
Quote from ArbWest:

Pardon me if this is ignornant but what the heck is a "trade away" benefit?? A give-up agreement?
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the pb account is a centralized location for all your stock and capital. doing away trades is like having an account at RBC but doing trades at GS or MER that will be dvp'd to your account at the end of day.
 
Quote from danc:

I have used primer brokers before, but I have found that they arent worth it. I use IB for institutional execution.
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IB ( Timber Hill ) can act like a prime broker in a lot of respects. I believe they also let you trade away.
 
Quote from wenzi:

IB ( Timber Hill ) can act like a prime broker in a lot of respects. I believe they also let you trade away.
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Yes... IB or any discount brokerage allows for give-up agreement or trade away, as you say. In todays environment of electronic trading, where one brokerage should be able to provide access to all exchanges and marketplaces...i'm still not understanding why this is considered to be a "benefit". The only reason which I would need such a benefit if is my current brokerage isn't able to deliver in the area that I need.
 
Use the mini-prime space. You can get prime broker service with the $1-$2MM. PM me, I can refer you to a few who mini prime to Merrill and Goldman. Actually I have the perfect solution for you, since I use one for all the same requirements you listed.

Quote from StLouisTrader:

Is anyone using a prime broker? I'm considering setting one up to pay for sell-side equity research via commissions. My "wish list" would be someone with low fees as I want the extra "cost" to go for research, not other services. I'd also need them to accept a low account minimum of $1-$2 million. I've heard M.S. Howell's (sp?) may fit this profile, but don't know much about them. Many thanks in advance for any ideas.
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...bumping one last time.

Thanks guys for some really great suggestions. I'll post the list in case anyone might have an additional suggestion, but I think this is getting pretty narrowed down given my needs (doing trades away to pay for research and low cost) and constraints ($1-$2 million account balance).

M.S. Howells
Mercator
Merlin
RBC Carlin
Hampton Securities
Terra Nova

Thanks again.
 
I want to talk to analysts at different firms about what they've written in their equity research reports. For this each firm must be "paid" in commissions. That's why I'd use a prime broker to easily "trade away" at different firms - so they each get paid. I think doing daily, multiple äway trades"at a discount broker is a non starter, It's not that IB can't get me the executions.



Quote from ArbWest:

Yes... IB or any discount brokerage allows for give-up agreement or trade away, as you say. In todays environment of electronic trading, where one brokerage should be able to provide access to all exchanges and marketplaces...i'm still not understanding why this is considered to be a "benefit". The only reason which I would need such a benefit if is my current brokerage isn't able to deliver in the area that I need.
More...
 
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