Lake St Closing?

Discussion in 'Prop Firms' started by FixedGrin, Mar 25, 2013.

  1. zdreg

    zdreg

    " This does not refer to traders/customers of the brokerage firm. It refers to employees of that firm. Firms like Lake Street and Broad Street operated as foreign firms but were US residents and as far as I know, operated from the US. They were not foreign-nationals. Therefore, they are under the jurisdiction of their local court system and any applicable regulatory requirements such as the SEC.

    Lake Street would have turned out differently if they were Mexicans operating out of Mexico City. They then would be subjected to Mexico's securities laws. If they were Mexicans operating in Mexico and registered with the Mexican authorities, they'd probably still be up and running today. "

    agreed.

    -------------------------------

    "Work-permits are not a difficult thing to understand. If you want to be employed by a UK company, you need a work-permit to be hired which you obtain with residency status."

    a legal resident of the US does not need a work permit to work in the US for a foreign or a domestic company.
     
    #31     Apr 5, 2013
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  2. EvOTraderV2

    EvOTraderV2

    This is not the case with broker-dealer activity. If someone is earning commissions off an account and residents in the US, they must be registered with US broker-dealer. The only way you can work for a foreign broker-dealer is to actually live in that country. It is illegal for a US person to collect a commission or salary from a foreign broker-dealer without being registered with the SEC.

    The firms that are outside the US are registering with countries like Nevis, Belize, Bahamas, Cayman Islands, Etc. Ultimately, that country's regulatory body has control over those policies but pretty much all require employees of a broker-dealer that is registered in that country to actually be residents of that country. The same way you need to be a resident to be sponsored for a Series 7.

     
    #32     Apr 5, 2013
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  3. SgtSlottter

    SgtSlottter

    Ummm. I'm not sure why anyone thinks that anyone, abroad or in the states, trading US markets are not subject to US laws and regs.

    “This should send a stern warning to anyone contemplating insider trading in U.S. markets from abroad that the SEC uncovers such misconduct and the end result is a severe financial setback rather than a windfall.”

    http://www.sec.gov/news/press/2013/2013-50.htm
     
    #33     Apr 5, 2013
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