Rabobank Prime Broker FX

1) As in I need an LLC, or I need equity in the $XX MM range?

2) Do I have direct access to the swaps? I need it for tax purposes as well, as I get better treatment from gains on swaps than 'interest' which is how the marked up payments from brokers apparently gets treated.

I dont think warping the 500K into an llc would do much, they have reduced the number of clients/counterparties and want the remaining to be of higher quality.

The rolls are usually handled by the broker, i doubt a client could or even wants to handle this by himself. You would need access to all counterparties of your broker, to be able to send settlement instructions and so forth. You are trading on a (prime)brokers or banks credit - financing is down their treasury dept, not you. How much they mark it up for clients is certainly negotiable.

Hmmm, that could be a problem.

I need to trade the swap itself and have a swap gain/loss rather than an actual interest payment/charge for tax reasons. Swap gains/loss = 0% tax, interest payment/loss = 30% tax.

What's interesting is that there seems to be two different methodologies that brokers use for carry:

1) 'Interest' payment or charge, such as IB, whereby they do the roll via a tom/next swap, keep your original entry price constant, and have a separate line entry for an interest payment or charge which includes their ridiculous markup
i.e. https://www.interactivebrokers.com/e...st&p=schedule1

2) Discount or premium to original position where the entry price changes each day,
i.e. http://documents.gftforex.com/Tomorr...dure_US_FX.pdf

With the latter methodology, it seems the carry gets converted to a capital gain/loss...