I keep hearing that Echo Trade is merging with or being purchased by T3. It seems that the regulatory environment regarding prop firms is becoming a factor in forcing some consolidations. Its just ridiculous that government regulators are trying everything they can to eliminate the "deposit based" prop trading industry. At this rate I wonder how long it will be before they are all gone or merged into one firm?
the consolidation is very rough. Unfortunately, the public elected these folks into office. Yes, the regulators have caused a lot of problems in the industry from over regulating and making prices higher to forcing license exams and other pointless things. It's not just the prop industry - it's all industries. The regulatory schemes are endless these days. If Echo is acquired or obtained by T3 or vice versa, that will be another blow to the industry giving traders less and less options. It's already damn near 1,000 to signup with a cbsx firm then you need to study for weeks if not months for a series 56. It especially makes it rough for young traders just trying to get into the game. You have more & more firms like TST & Alpha 7, Maverick, SMB, etc where you have to pay for training separately and then the firm hires you to trade their capital. In my opinions, consumers would better protected if the regulations were simpler but it doesn't really like we're gonna go back. At least not for the next half decade. Make no doubt about it, will dodd-frank fully coming into play in 2014, we'll see more of this. The regulatory costs are become insane no matter what type of business you're in - ask any shop keeper. We've had WTS pickup like a dozen groups including Dimension, CTG and others. Now we have T3 and Echo coming together. By the time this is all said & done, we'll have about as many firms to go to as you can count on your hand.