Question by SamyB: What is the usual commission that Wall Street Brokers charge Hedge Funds?
I would like to know what is the commission agreement between agency brokers in wall street and institutions dealing with large volumes of stocks such as Hedge Funds, Fund of Funds, Mutual Funds or Banks.

Thanks!

Best answer:

Answer by Barney
Some are charge so much cents per share, some are charged a fee for the entire order, some are not charge at all,

Chargers depend on the quantity involved, the market being used, the thinness of the market, time frame required to fill order, inventories requirements or needs of the B/D or market makers/specialist.

So, there is no “usual” commission that firms charge hedge funds or other institutional firms,

Add your own answer in the comments!

AllAboutAlpha.com (blog)

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Source: Hedge Fund – Google News

Joe Higgins MEP explains his abstention on today’s vote on the Financial Transactions Tax resolution and calls instead for the hedge funds to be taken into public ownership and their resources invested into society for the benefit of all. The Commission has conspired with these speculators in their attacks on the Euro and particularly in Greece. (10-03-10)

I would like to know what is the commission agreement between agency brokers in wall street and institutions dealing with large volumes of stocks such as Hedge Funds, Fund of Funds, Mutual Funds or Banks.

Thanks!

Globe and Mail

European Commission Seeks Info. On Hedge Fund CDS Activity FINalternatives Once again, hedge funds have found themselves squarely in the sights of European regulators. The European Commission is held a pair of meetings today to … EU To Question CDS Hedge Fund Trades – DocumentWall Street Journal Banks defend use of sovereign CDS trade to hedge riskFinancial Times The blame gameAsia Times Online Earthtimes (press release) -Globe and Mail -Telegraph.co.uk (blog) all 220 news articles »

Source: Hedge Fund – Google News

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ForEx, hedge funds. Registering with the Commodity Futures Trading Commission

Generally, the Commodity Futures Trading Commission has jurisdiction over transactions in ForEx futures and options contracts offered to retail customers, and the only counterparties that can lawfully enter into these contracts with retail customers on an off-exchange basis are persons that are: (i) registered with the Commission as a futures commission merchant (FCM); (ii) certain affiliates of a registered FCM;, or (iii) otherwise regulated, e.g., as a securities broker-dealer, a bank, a financial institution or an insurance company.

On May 22, 2008, the Congress passed the Farm Bill which, in Title XIII, contains several amendments to the Commodity Exchange Act involving the retail trading of foreign exchange.

Under the CFTC Reauthorization Act, a person operating pool solely trading spot ForEx is not required to register as a CPO at this time (but may be so required in the future upon promulgation of regulations by the CFTC). 

If I start up a Fund of Funds and allocate among equity and futures funds what  kinds of registration issues do I need to be concerned with? 

As a Fund of Funds you must be aware of each particular states Investment Advisor rules. Many states have exemptions from registration. Also if you intend to invest in futures or commodity funds, you should register with the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC) as a Commodity Pool Operator (CPO). This CPO’s associated person must successfully complete the NASD Series 3 examination. 

Must a finder be registered as a broker-dealer? 

Generally, No. Generally a finder does not have to be registered as a broker-dealer if its finder’s activities are limited. A “broker” under the Securities Exchange Act of 1934 is “any person engaged in the business of effecting transactions in securities for the account of others.” The SEC staff has found activities such as (a) participating in presentations or negotiations, (b) making any recommendations concerning securities, (c) receiving transaction-based compensation, (d) structuring a transaction or making recommendations regarding the nature of the securities, whether to issue securities or to assess the value of securities sold, and (e) continuing involvement in sales of securities to trigger broker-dealer registration obligations.  However, a number of states, Texas and California for example,  take the position that only a registered representative (broker) may receive kind of compensation. 

Are there any other types of finders available to issuers in a private placement? 

Yes. Rule 3a4-1 provides a non-exclusive safe harbor from the definition of a broker for persons associated with an issuer who are engaged in securities-related activities incident to their duties on behalf of the issuer. See Securities Exchange Act Rel. No. 22172 (June 27, 1985). Employees and possibly individual affiliates of an issuer who are not registered representatives of broker-dealers may be considered “associated persons” for purposes of Rule 3a4-1, in which case they may be exempt from registration and will be permitted to engage in limited sales activities pursuant to the Rule’s safe harbor. 

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