The decision to cease trading appeared in a tersely written single sentence
Two senior-ranking executives at competing prime brokerage firms, say that Lighthouse has notified its 22 hedge fund clients that they can no longer execute new orders. Those executives, who spoke on condition of anonymity, also said that the firm has put its prime brokerage and trading units up for sale and has met with other larger prime brokers about this.
As a so-called mini-prime broker, Lighthouse has an estimated $200 million in assets, according to one of the two executives. “Lighthouse ran out of regulatory capital and overcommitted itself in real estate and other costs without bringing in sufficient clientele,” said that executive.
Lighthouse shut down trading at the request of the
An initial call to Lighthouse in New York late Wednesday night went unanswered and a second call on Thursday morning was answered by a receptionist who said: “We have no comment for the press.” FINRA could not immediately comment on Lighthouse’s news.