Introducing Cornerstone MTO (Member Trader Organization)

Discussion in 'Prop Firms' started by Steve Dillinger, Apr 21, 2008.

  1. Steve Dillinger

    Steve Dillinger ET Sponsor

    I would like to introduce Cornerstone MTO (Member Trader Organization). A trading firm designed by Cornerstone Trading Group exclusively for independent professional traders. We are a well established proprietary trading firm that has been in business for nearly 20 years. For the first time we are accepting membership applications from select independent professional traders.

    We offer our members access to the full suite of services and technologies that in the past have only been available to traders employed at large Wall Street firms.

    We provide access to most US Equity, Future and Option markets through top trading platforms. We have relationships with many large Wall Street firms, allowing our members access to the most advanced algorithmic trading, top-notch research, and timely market commentary on the street.

    We have a nearly 20 year relationship with Merrill Lynch Professional Clearing (and its predecessors) and have a very strong capital base. The six owners of the firm average 25 years trading experience. Mark Duffy, one of our Managing Members, is on the Board of Directors of Chicago Board Options Exchange.

    Due to our size, history and capital base we can offer our members very low rates. We offer our member equity traders a rate of $0.0020 / share ($2 / thousand), our member futures traders $0.10 / contract and our member options traders $0.25 / contract. All with no minimums. There is a $1,000 per month membership fee.

    We are not a retail firm and do not have 'customers.' If you are accepted as a member of Cornerstone MTO you become a member of our firm. If you are new to the field and need a place to get your feet wet we are not the answer. If, however, you are an established, well-capitalized trader you should consider applying for membership.

    That is the short version for now. I will provide more detailed information in the near future. In the mean time for more information on our MTO and proprietary group you can check out our website- If you have more questions or would like to apply for membership you may contact me via email ( or phone (312-431-7300).


    Steve Dillinger
    Managing Member
    Cornerstone Trading Group | Cornerstone MTO
  2. Steve Dillinger

    Steve Dillinger ET Sponsor

    Correct. Our members are not required to hold the S-7.

    We occasionally back traders, but only after becoming very familiar with their trading and character. We are also continually on the look out for traders to employee in our prop trading group.

    MTO- Member Trading Organization.

    PTG- Proprietary Trading Group.

    MTO houses the independent traders. The PTG is where we do our prop trading.

    Hope this helps.


    Steve Dillinger

    Managing Member
    Cornerstonet MTO | Cornerstone Trading Group
  3. In which one do the traders not need a series 7, the MTO or the PTG?
  4. Are you an employee of the firm so as to not require a Series 7 for equities? Curious also how payouts work, and if I have access to my capital at all times if I need to take out?
  5. Steve Dillinger

    Steve Dillinger ET Sponsor

    You are not an employee of the firm- you become a member of the LLC. You are not required to have a S-7.

    In terms of Capital Withdrawals, you can take out capital whenever you wish subject to risk control and regulatory requirements on our side (which rarely come into play).

    Having said that we would not be excited about cutting a check every day. :)
  6. Once a month or twice works for me for checks. Sorry for my ignorance, but am curious as the rates are very appealing. I would like to stay remote, would there still be the opportunity to come in on occassion to bounce ideas off others and get a feel for what others are doing, or do most members prefer to keep to themselves? Also beyond the fee advantages, are there tax advantages to being a part of an LLC, or will I still being working from a 1099-B at year end? Am I bringing my own charting software, or do you have a platform? Which order entry platforms do you offer on the futures side?
    Thanks, feel free to pm answers if you prefer
  7. But isn't that the same setup as TUCO? Aren't you worried about the SEC coming in and freezing all of your and your traders capital just like they did to TUCO?
  8. Steve Dillinger

    Steve Dillinger ET Sponsor

    I am posting my reply here as I assume many others have the same questions...

    Our physical location is in the Chicago loop. We have a great office with professional trading stations - no folding tables. We also have amazing views of the lake, for what that's worth.

    We do not have a desk fee so you are free to come in as often or as little as you like.

    Generally speaking our members are always willing to hear and discuss ideas. We had several traders in the office make a killing in GOOG calls friday. The idea was shared around. Of course I can't promise that every day. :)

    As far as tax stuff you would have to speak to a tax guy. We provide all members K-1s at the end of the year- I believe that is very preferrable to a 1099 which would be all ordinary income.

    As for platforms we use Sterling Trader Pro, ThinkOrSwim and TT.

    Hope this helps.
  9. Hmm,

    What are you doing that a hundred other firms are not doing?

    In other words, explain to me why you are not just another "prop" firm trading the same oversaturated US equity markets.
  10. just another fancy llc trying to repackage there gig. basically if i get it right they're charging you a "membership" fee of 1k a month to trade your money under there wing of better commissions. correct?it might be ok for very very high vol option or future traders but for stocks it sucks. anybody with 1/2 a brain can get .002 for minimial vol with there own money and pay no fees. lol you use sterling pro? just do a search on here and you'll see its one fo the worst platforms out there. it also has one of the cheapest commisisons so if he's giving out .002 he's well under .001 per share and i mean well under
    #10     Apr 21, 2008