 |
hitnrun
Registered: Sep 2011
Posts: 514 |
01-11-12 10:57 PM
Mav74
You have discussed this rumor several times in the past 2 years . all for good reason
What is different now then before with a actual rule being implemented by the sec ?
|
| |
|
Edit/Delete • Quote • Complain |
reddy09
Registered: Sep 2011
Posts: 13 |
01-12-12 12:25 AM
Quote from Maverick74:
I had a meeting yesterday with someone here in Chicago and talked about the state of the JBO business.
My understanding is that most CBSX firms are not set up as JBOs....is it different for those firms? How can the SEC regulate giving a trader a "bonus" at the end of the year? This is too easy to get around and too difficult to enforce. I don't see it happening.
|
| |
|
Edit/Delete • Quote • Complain |
Lights
Registered: Sep 2003
Posts: 1147 |
01-14-12 03:43 AM
firms can simply hire traders as employees. otherwise, prop firms will move to portfolio margin if payout limits are enforced and still pay out 100%. many more "prop" groups and individual traders have left jbo over the years to CPM. jbo is outdated, 1 year lockup, regulated, compliance, etc..
if your prop firm is big, owner most likely has up millions of his own capital which qualifies for unlimited intraday leveraging via CPM. JBO is for the little MM guy or group capitalized < few million.
Quote from reddy09:
My understanding is that most CBSX firms are not set up as JBOs....is it different for those firms? How can the SEC regulate giving a trader a "bonus" at the end of the year? This is too easy to get around and too difficult to enforce. I don't see it happening.
|
| |
|
Edit/Delete • Quote • Complain |
Don Bright
Bright Trading, LLC
Registered: Oct 2001
Posts: 11698 |
01-14-12 07:04 PM
There are a lot of changes going on, that's for sure. We are planning ahead, positioning ouselves in such ways to be able to offer our traders the "best of the possible alternatives." Staying a family owned business gives us this flexibility... a "board meeting" comprises my brother and I, my niece, my other niece (CFO type) and a 5 minute conversation usually. And, Love them or Hate them, we have very good relationship with Goldman, who offer us the aforementioned flexibility.
I'll try to post as much as I can as things develop.
All the best to everyone for 2012!
Don
__________________
Don Bright (not an alias)
Bright Trading, LLC
http://www.stocktrading.com
|
| |
|
Edit/Delete • Quote • Complain |
Maverick74
Registered: Mar 2002
Posts: 17320 |
01-14-12 07:10 PM
Quote from Don Bright:
There are a lot of changes going on, that's for sure. We are planning ahead, positioning ouselves in such ways to be able to offer our traders the "best of the possible alternatives." Staying a family owned business gives us this flexibility... a "board meeting" comprises my brother and I, my niece, my other niece (CFO type) and a 5 minute conversation usually. And, Love them or Hate them, we have very good relationship with Goldman, who offer us the aforementioned flexibility.
I'll try to post as much as I can as things develop.
All the best to everyone for 2012!
Don
Don, there is a very real possibility of the prop model going to 100% employee based very soon. This means W-2. You should plan accordingly.
|
| |
|
Edit/Delete • Quote • Complain |
Don Bright
Bright Trading, LLC
Registered: Oct 2001
Posts: 11698 |
01-14-12 07:14 PM
Quote from Maverick74:
Don, there is a very real possibility of the prop model going to 100% employee based very soon. This means W-2. You should plan accordingly.
Yep, that's an option alright. As we query our current top traders, they're fighting adamanty against this. They like their independence, freedom, and tax benefits currently enjoyed.
Don
Good to chat with you my friend! Sitting home on a Saturday morning. I have had to actually re-train myself on my trading, LOL. all winning days this year, albeit small $$ (kinda busy catching up with stuff). First week good movement, last week seemed like everyone went on vacation.
All the best, Mav....
__________________
Don Bright (not an alias)
Bright Trading, LLC
http://www.stocktrading.com
|
| |
|
Edit/Delete • Quote • Complain |
| Receive
an email whenever a new post is added to this thread by subscribing
to it. |
|
|
|
|
