bone
ET Sponsor
Registered: Apr 2002
Posts: 4329 |
09-30-12 04:27 PM
Quote from PocketChange:
Simple question:
Why would you set up a JBO in the US and not outside of the US?
#1. only 3 choices left in the US: GS, ML or ABN
#2. Segregated accounts are a scam. Possession is 9/10 of the law.
The practice is only in the US and recovery from fraudsters is near futile.
#3. Cross Margin relief / OCC / SEC limits. Very restrictive.
#4. Taxes
Outside of the US
#1. Accounts are held in your name.
#2. 200x1 juice available (insane)
#3. Cross Margin relief on non OCC approved pairs.
#4. Local examining authority trumps SEC/CFTC
#5. Taxes deferred until profits are repatriated (if ever)
Obviously the list can be swayed by your motives but the major underlying issue is the account trading structure for derivatives in the US is fundamentally flawed and not safe.
I have about 50 overseas clients - and they all set up US futures accounts; even post PFG and MF. And it is entirely their own decision, as it makes no difference to me where they clear provided that they have access to the correct products and that their execution platform supports exchange traded spreads. I am not implying that they do not also have European accounts, just stating how my own clients choose for themselves how to clear futures.
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