Saturday, 1 October 2016
Last updated 19 hours ago
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.