Dark storm cloud brewing on payout rules

Discussion in 'Prop Firms' started by Maverick74, Jan 11, 2012.

  1. Maverick74


    I had a meeting yesterday with someone here in Chicago and talked about the state of the JBO business. I am hearing that this year we are going to get strict enforcement of the payout rules. I've even heard the number 50% thrown around. Firms cannot and will not be allowed to give 100% payouts and the ceiling will most likely be 80% and could be as low as 50%. There will be no gimmicks or games allowed. There will be STRICT enforcement of this policy. It's getting a lot of discussion here. I just wanted to put this out there. I do not have any "inside" info regarding this so please don't ask. I'm just reporting what I am hearing.
  2. I heard this too. There is enough talk about this out there. its been out for a while. From what I hear its as good as done. and with it, so is the prop business in the US. I myself am just moving offshore. The prop biz is alive and well over the high seas.

    I thought this was just for equities shops, will this be enforced by nfa cftc as well?
  3. I'm not too worried. These idiots will regulate their way out of a job soon. They do some stupid 50/50 split & traders take their money overseas and they lose their precious licensing exam fees and their transaction taxes.
  4. currently rule on options with CBOE is 99/1. Nothing clear on equities.
  5. Maverick74


    Nobody is going overseas to trade. Put that fantasy away now.
  6. Mvector


    Individual Futures Acct + great leverage + 60/40 rule + 100% payout = WIN!
  7. CoraAG


    If the max payout CBSX firms are allowed drops from 99% to 80%, then it seems to me that the commish structure would have to be adjusted accordingly. Otherwise, the model would become unviable for too many traders.
  8. why not? A nice beach/laptop setup somewhere on the mediterranean coast. sounds nice.
  9. Maverick74


    This has been discussed at length on here. People are not going to just leave their families and friends. A few guys will, but most won't.
  10. silk


    If the payout is reduced from 100% to 80%. Couldn't the loss sharing ratio also be lowered from 100% to 80% and all would be the same more or less from the traders point of view?
    #10     Jan 11, 2012