I was speaking to a guy i know who has been trading for 15 years or so and we were just talking about the trade and market etc. and he said "People are getting sick of all these prop shops and arcades popping up everywhere, they have infected the exchange like the flu" I laughed pretty hard. Apparently those places dont' have the greatest of reps.
NO he' s been a local forever. He was in the pit for 10 yrs and then moved to screen based trading. I didn't ask him why he thought the way he did but I"m assuming its the nonsense that goes on alot. What is good is that when volatility picks up they all have their tales between their legs because they might get filled.
The typical prop business model once executed is what provides liquidity and profits for your friend. True prop firms have a high turnover and deep pockets. They are usually backed by former pit traders who made good money but can't handle the screens or aggressiveness in the pit. Your friend, assuming he can make money on the screen, should view this as a blessing in my opinion.