Desk fees at MMs and prop trading firms
Some MM hedge funds and prop trading firms like Maven, DRW or Bluecrest charge their PMs a "desk fee" , i.e. some share of the rent, admin overhead costs, etc. Does anyone here know what would be a typical amount they charge? I suppose it might be proportional to your capital allocation.
To be clear, i dont mean costs for data, BBG terminal or additional resources , just the pure desk fee
Also, is this ttypically charged before or after the payout, i.e. if for example that fee is 100k and my payout is 20 percent, will they reduce 20k or 100k from my pay?
Desk fees will vary greatly depending on desk & firm. That being said, I can tell you that an algo desk will have significantly higher desk fees than a discretionary trader. In some cases it can be almost 2x. In my experience these fees typically get taken out of top line revenue rather than post split.
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