firms memberships in exchanges

Discussion in 'Prop Firms' started by OHLC, Aug 8, 2002.

  1. OHLC


    I noticed the various prop firms are not members of the same exchanges. (Ex : Bright Trading LLC is a member of the Chicago stock exchange while Van Buren Securities LLC is a member of the PHLX).

    I'm wondering wether this membership is just a regulatory issue, or if there was more than this...

    Does the membership in such or such exchange provide any specific benefits, or is it the same thing to be a member of the MSE or PHLX or whatever ?

    Are the traders considered as members of the exchange their firm is a member of ?


  2. There are different rules at the various "SRO's"...but primarily it can be a cost issue. The Phlx raised the annual expenses to the traders, so we moved to CHX to save the traders money. I think they have reduced rates again to be competitive.

  3. Don, why is it necessary for the firm to be a member of an exchange?
  4. To have "true" access to trading, one must be associated with a Broker/Dealer who is a member of a qualified Exchange. The "retail" firms are all members, and the floor traders are all members, we (professional firms) are basically comprised of "partners" (members) who have the same privileges (market access, liberal rules, etc.).

    If you're not an exchange member, or licensed member of a firm, then you're probably a customer of a retail broker (which is fine for many, but not all traders want the limitations associated with being a customer).

    Feel free to call to discuss.

  5. axehawk


    If you join Echo (PHLX) you will have to pay $500 to become a member.
    If you join Bright (CSE) you will have to pay $1000 to become a member.
  6. Not true....we left the pHLX when they raised their prices to $1,000, so we went to Chicago to pay only $500. The philly has gone back down after we left (and they lost 500 traders from us alone that year).

    I know you've been here axe, when did you get the idea that the fees were $1,000???

  7. axehawk


    Sorry Don. My bad. I thought that's what you told me in the spring but I mixed it up.
  8. Not a problem....I hope all is well with you!!

  9. Bryan Roberts

    Bryan Roberts Guest

    500 traders??? lol lol lol...not according to eddie. more like 300 with 100 trying to pass the 7.
  10. What sense does it make to mis state facts. You're talking maybe 3 years ago..

    We have between 500-600 fully registered, current traders. Plus another 100-150 in process.

    Not a big deal, just the facts....I have the spreadsheet in front of me.

    Don :confused:
    #10     Aug 13, 2002