[DcifrThs]

first off stephen,

thanks for the kind words about BFI. i'd say the same as well. there seem to be far more well thought out posts here per capita than any other forum here.

now, onto your post.

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2.Firms like this usually self-clear,eliminating clearing house costs.That is no different than GS,Bear,Lehman,etc


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are you saying they do self clear? because i'd bet they don't.

i worked for one of the top hedge funds in the world and they don't self clear. they definitely do thousands of trades a day but aren't even high frequency traders (just a long term fundamental strategy that has to meet tons of client account restrictions and adjust the portfolio to the signal generated 3 times a day in over 250 markets). there is no self clearing there. they spread the orders out among many prime brokers.

similarly, i'd bet shaw & williams' firms do the same. i doubt they self clear.

anyways, i'll reread to digest your post and post any other thoughts i have.

thanks,
Barron