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.
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?
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.
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.
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.
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?