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

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR