Electronic brokerage firm TradeStation Securities is looking to capture a piece of the lucrative hedge fund prime brokerage pie. The firm today launched its new unit, the TradeStation prime services division.
According to the firm, TradeStation prime services aims fill the growing need of start-up to mid-sized hedge funds, registered investment advisers, professional traders and asset managers for quality prime brokerage services which are no longer being provided by the larger firms that traditionally served this market segment.
TradeStation prime services will serve traders of equities, equity and index options, futures, non-U.S. equities, and forex. TradeStation Securities currently offers the clearing and custody services of J.P. Morgan Clearing Corp. (for equities and options) and R.J. O'Brien & Associates LLC (for futures).
The new prime services unit will be co-headed by Lance Baraker and William Katts, as senior managing directors, both of whom have significant experience running prime services operations in New York.
Baraker and Katts will run the division from a new TradeStation office in mid-town Manhattan, and will seek to take advantage of TradeStation's office presences in South Florida, Chicago, Richardson/Dallas, and London to attract new clients.
TradeStation will also now have a full membership and direct access operation on the floor of the New York Stock Exchange to accommodate clients who make some of their trades on the NYSE floor.
"The downfall of many financial firms in 2008 has created a rare opportunity for another custodian to enter and succeed in the prime brokerage market,” said Baraker. “William and I look forward to combining our experience and relationships built over the years with TradeStation's industry-leading technology to create a leading, powerful prime brokerage platform for the buy-side institutional trader."