Lightspeed Financial said it would begin acting as a prime broker for hedge funds and institutional investors.

The provider of ultra low latency direct market access trading technology said it is launching launch Lightspeed Institutional as a division of the company’s introducing broker-dealer subsidiary Lightspeed Trading.

Lightspeed Institutional will offer manual and automated trading, a sales trading desk for execution services, technology services, custody, clearing, securities lending, and portfolio reporting. Lightspeed Institutional also will provide pre-trade risk management and real-time risk monitoring.

The services will include:

* Agency-only and Outsourced Trade Desks: A hybrid model of electronic and voice access to experienced industry professionals and traders available to route order flow to brokers of choice.

* Prime Brokerage: Custody, clearing, and security lending of domestic and international securities.

* Multiple Account Types: Portfolio Margining, Separately Managed Account (SMA), Delivery vs. Payment (DVP)/ Receipt vs. Payment (RVP), and Clearing Member Trade Agreement (CMTA), among others.

* Commission Management: Fully compliant and integrated soft dollar system across multiple asset classes and a CSA solution.

Reporting: Comprehensive, customized reporting, portfolio accounting, and performance management.

"The decision to expand into prime brokerage stems from our desire to meet the demands of a growing number of sophisticated investors who have grown dissatisfied with the level and cost of service they are receiving from some of the bigger players in the space," said Andrew Actman, chief strategy officer, Lightspeed Financial.

-- This article first appeared on Securities Technology Monitor.