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Strategies & Market Trends : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: steve goldman who wrote (2215)	1/6/1998 3:03:00 PM
From: George McMeen	Read Replies (2) \| Respond to of 4969

Yamner & Margin Rates Although a seldomly addressed, I was wondering if Steve would address the subject of rates of interest charged with respect to Margin. For example, how does Yamner decide what rates to charge? I assume a large bank type firm (Gruntal?) loans them the necessary funds at a certain rate of interest? Does Yamner actively search for firms which will provide rates of interest lower than their present money provider??? What "formula" is used in deciding how much Yamner will "mark-it-up" before passing the rate to the client? Often one will find discount brokers with low commissions but rates 3 to 4% above broker call. Perhaps Brown is able to offer extrodinarily low rates because they make up for it in other areas (in the same way other brokers offer low rates of commision and make up for it in other areas). Knowing more about how margin rates are determined would provide more insight. Cheers. George