Does this protect traders?

Discussion in 'Prop Firms' started by mc312, Jul 17, 2006.

  1. OK, hmmm? First off, from Assent's Financial statements.
    "Assent LLC ("the Company") is a Delaware limited liability company,
    an indirect wholly owned subsidiary of SunGard Data Systems Inc."

    You can spin that if you want, but in my little mind "wholly owned" pretty much means Sungard. No big deal.

    Secondly, from Assent balance sheets.


    Members' equity 48,451,875

    From Bright Trading balance sheets:

    Class B Member Capital 14,968,876
    Class A Member Capital 49,012,019

    This totals about $63 million.

    We have to keep all of our money combined to protect the traders after some accounting changes. Thus the "$10million minimum" is obviously much more. Feel free to contact our Compliance Officer if you require further explanation...(you'll notice that I edited as per her instructions, since she is responsible for our regulatory and financial issues).

    I don't really think you think we lack the technology and skill (not to mention the determination, since it's our money, not shareholders or investors) to monitor risk well.

    We allow a lot of leeway for good traders, provide capital to logical strategies, but don't allow "20-100" times for frivolous "cowboy" trades...and, since our traders are licensed and members, they are held to the highest standards of integrity. In our entire history we have never had anyone else pay for anything derived from some else's losses.

    If this is of value to you, great...at least now you have some facts to review.

    All the best,

    Don

    In reverence to "Bernanke day" if you haven't seen this, watch the whole thing, it is excellent...from the Columbia School of Business.

    http://www.youtube.com/watch?v=3u2qRXb4xCU
     
    #21     Jul 19, 2006
  2. tradethetrade

    tradethetrade Vendor

    How often do prop firms go bankrupt? Is there a success rate in the industry? I was reading another post about props being registered to protect the traders. I like the idea even though as I understand you are more restricted to what you can trade. I am barely making into the green and have been considering working for one. The lower commish and some training might make the difference.
     
    #22     Jul 19, 2006
  3. cstu

    cstu

    Don

    Based on your last post are you telling me Class A members have ~$49 million and class B have ~$14 million ten million of which is put up by your firm?

    Other class B members have contributed $4?

    And you would have to sustain losses of ~>$15 million before any class A capital was touched?
     
    #23     Jul 20, 2006
  4. Because of accounting changes, we actually have all the money listed above to protect the traders...as I mentioned above the "minimum" of $10million has really turned into several times $10million. (That's how my Compliance Officer explained the whole thing again to me).

    And to the guy who asked about prop firms going bankrupt...there have been a few, many more of the "sub-llc" types that simply disbanded as I recollect. Do a search on ET, someone posted a long list of firms that are no longer with us. Something like "RIP" list or something, can't remember.

    Don
     
    #24     Jul 20, 2006