Lighthouse Financial Group Halts Trading, Acquisition Rumors Swirl

Aug 3 2010 | 12:17pm ET

Broker dealer Lighthouse Financial Group, which includes prime brokerage unit Lighthouse Prime Services, has ceased trading, a source close to the firm tells FINalternatives.

The New York-based firm has reportedly been unable to make payroll for weeks, and today it informed clients that they could no longer place trades through the firm—they could only sell assets.

A different source close to the firm says that Lighthouse is in talks with a boutique firm that has eyes on becoming a much larger player and is making a bid for all of the divisions, and an announcement could come as early as this afternoon.

Lighthouse executives did not return calls by press time, and one hedge fund that does business with the firm declined to comment.

While Lighthouse Financial Group was founded in 1999, its prime brokerage unit wasn't launched until March of 2009. The unit caters to hedge funds and high-frequency traders, and it is thought to have between 25-35 hedge fund clients.

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…