latest on Lions trading

Discussion in 'Prop Firms' started by ddlee, Jun 10, 2002.

  1. ddlee


    Wondering what the latest info on Lions trading is. I have not read any info on the threads in a while. On the surface, at first glance, this new prop co. looked okay.
  2. Seems as if they are another firm saddled with the Goldman/SLK cost structure. Ultimately, that will be a problem as they try to compete.
  3. Just a note of clarification. There is no "cost structure" to be "saddled" with at GS or SLK....they are very competitive within the marketplace....but they are very selective ...and of course have a sliding scale based on the financial security and share volume of the firm being cleared. Some firms will obviously pay a fraction of what a new firm may be asked to pay. This is a common and sensible business practice, to reward success, in my opinion.

    Not tyring to be argumentative at all, just making a point since we have been with SLK since 1978.

  4. ddlee


    Thanks Don

    Actually I got a open invite to Lions/Miami branch. I will check it out soon as I was very disappointed in your cleveland, bright branch (at least last fall) No way the vegas bright branch runs like that im sure.
  5. With all due respect, you have been with First Options since 1978. They themselves were brought and sold. In fact SLK took them back after the crash at a credit or so the rumour goes. You have been with GOLDMAN SACHS for a few months now. If you think SLK is the same as it was last year or even last month, you are mistaken. All of the big names are gone, out counting their money they made on your back as well as Generic, ETG and a whole lot of others. Now it is Goldman's show. They do not seem to like being associated with "day traders". I watched as my former firm did everything they could to maintain a relationship with SLK before moving to Instinet. Instinet seems to be an aggressive growing operation that is not holding its nose in the air to day traders. Or so I am told. As a point of disclosure, I am currently an introduced customer at SLK and am happy with the REDI+. When I left Prop trading to be a customer (4:1 intraday, 2:1 overnight -- why put my money in an LLC?) I specifically sought out an SLK firm.
  6. We started with SLK in 1978, with Barbara Newton as our manager, she then went on to run FOC in S.F. and on the a high position with SLK (why do I have to keep explaining basic facts as if I were making this stuff up?). FOC took over SLK (O'connors and group). I agree with you about Instinet, and we have met with their President and CEO several times. GS is doing some busness model changes, but they brought us into the "fold" via SLK again (some software upgrades were required at our end to tie in with them).

    The basic reason most people like the licensed LLC program is that they can put in $2 or $3 Million in Opening Only orders (low risk, high reward), have their orders go straight to the NYSE, and for the most part have lower costs.

    I think you're doing fine, Redi Plus is great and getting better all the time, and I wish you well.

  7. Don,
    When I said that Bright was with FOC since 1978 I meant FOC/SLK a forward thinking, risk taking entrepreneurial type of firm as differentiated from GS a firm that does not want its name tarnished with day traders, that only wants to collect commissions without dirtying itself. I did not mean to give the exact details of your long relationship with FOC/SLK/Newton. I was trying to point out that there is not an assumed continuum from SLK to GS in the way the firm is run now that Mitch Lieber is the boss. I recomend talking to the management of ETG (they are open) about the differences at SLK over the last year. You're there, though, so you probably know better than anyone else. All that counts is that you and your firm are happy with the relationship. Why did they have you switch to SLK from FOC in the first place?
  8. You are right about GS not being totally thrilled with all of the FOC portion of the SLK acquisition. Several firms had to go find homes elsewhere....simply business decisions, nothing negative being implied. They sort of "courted" us, sent out high level representatives and all that....and switched us to SLK corporate so we could take advantage of all the risk control and other benefits. I think they may spin off FOC all the way at some point.

    We chat with Bob Kantor (ETG), from time to time about some of the changes, and like I said we have spoken with other clearing firms....but until the benefits are there (costs, access, platforms, etc.), we will stay where we are. As I've been saying, there is a lot going on "behind the scenes" - and the consolidation is ongoing.

    Back to you!

  9. I would be interested in knowing how many active traders there are at Lion's...and when they started the firm...Who they clear through. Since they use REDI+ and are somewhat connected to Generic, I assume they clear through SLK?
  10. ddlee


    I spoke briefly with someone (rather not say) from the miami office, I believe that you are correct in your statement about SLK
    According to some other threads the men that left to start lions have some great trading talent.
    #10     Jun 11, 2002