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Hi Dan
i agree totally....execution (slippage) costs and back-office
clearing or "hidden" costs account for much more than brokerage
and are why large brokerage houses are prepared to "extend"
margin to large CTA's
very large Bro House in the USA made US$8,000,000 from bro
(after errors) in 1997-98 but made US$22,000,000 from clearing...they
of course made 4 times that last figure from managed funds
the profit and loss relationship betweeb bro and clearing should be
therefore watched carefully as many of those costs are hidden and appear
later IMHO
mark
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