NYSE Charges

Discussion in 'Prop Firms' started by ShortIgnorance, Jan 19, 2002.

  1. Mr. Bright,

    Maybe you can clear this up. My understanding is that the NYSE does NOT bill member firms (SLK in your case) any additional monies for trades from 2100 to 5000 shares, IF that member firm's total NYSE fees exceed (roughly) $500,000 that month. It's pretty clear that SLK meets this threshold so then why would SLK pass any of these fees on to Bright? In turn, why would Bright pass any of these fees on to its traders? Is someone making a little extra undisclosed profit margin here or am I sniffing glue?
  2. I think we are all sniffing glue to pay so much in commissions.
  3. Speculator1929

    Speculator1929 Guest

    WHile you may be right about the rule, I don't mind paying SOME commissions because of the economy of scale I get from being in a group like Bright (Not Bright). Try going to SLK to get your own rate directly. I did. I got laughed at for the amount of capital I was putting up (around $250K) and the rate I asked for. I found if you go to a group that clears SLK you can get a better rate than SLK would give you direct. I see the rates as a cost of capital. I use more than the 4 to 1 intraday allowed for a customer. If you don't like the rates don't pay them. Find an alternative. Rate complaining is just an excuse for blaming others for your lack of returns. It turns out that Bright and the rest are in this to make money. They provide a service at a reasonable cost. I read these boards and rarely see someone say what is good about these firms. They give me access to all the world markets so I can do what I love, trade for a living. I'd probably pay higher for that privilege. It is a privilege, not a right.
  4. You are confusing the issue. Paying commissions for a valuable service is fine and dandy. I'm not "complaining" about commissions in general. It is the thought of paying inaccurate or misleading fees that troubles me. I can't be certain if this is the case with Bright as of yet because I am still awaiting Don's response.
  5. Speculator1929

    Speculator1929 Guest

    In that case, wait for Don's reply. Did Don imply that his rates were simply a passthru plus markup, or can his rates be whatever he charges regardless of NYSE guidlines? Maybe SLK is charging Bright different than the way the NYSE Specialists charge SLK. If Bright is charged a flat rate from SLK per share of say $0.0025 per share with no limitations or caps, then Bright can't not charge you when you reach certain thresholds. Also there are clearing charges in addition to specialist brokerage. I am waiting like you to see what he says.
  6. Have you simply not seen this thread or are you ignoring it for some reason?
  7. I thought that I had answered this in a previous post, but in case I missed it, here goes. The NYSE has implemented a fee that is charged for orders between 2100 shares and 5100 shares that is high. We have advised our traders to either trade 2000 or 5100 shares until this issue is resolved. This will be changed sometime in the future, and should have no impact as long as these guidelines are followed.
  8. This NYSE charge for orders from 2100-5000 shares is not new. It's been around for quite some time. However, my contacts at Bright tell me you started charging for this within the past year. First off, I'm interested to know why you started charging for this all of a sudden.


    Why do you (or SLK) charge for it at all??? If you read the first post of this thread you can't miss my point. That is, apparenty the NYSE does NOT bill SLK anything additional for trades from 2100 to 5000 shares because SLK pays NYSE DOT fees that far exceed the $500,000 monthly cap (so they should be exempt from this charge). That being the case, why do you pass it along??? Is someone making undisclosed additional profits from these "phantom fees," or am I completely wrong?

    And in the future, please do myself and the other readers the service of:
    a. Reading posts carefully, and/or
    b. not overtly dodging peoples questions.

    Thank you.
  9. ShortIgnorance,

    Bright , ECHO and LWS will give traders rates of .01 per share.
    If you can't make money at .01 per share, at what rate could you
    make a living? I can only speak for myself, but if I run a business , I'm not required to break down every cost or fee I have
    to my customers. If you bought a computer at Dell and you read that RAM prices have gown down 50%, would you complain to Michael Dell that his computers are too expensive and should be cut in half?
    I assure you that the rates ar so low now that firms have to do
    share volume to make any money. You do not understand the costs involved in running a firm. Believe me, if you trade at a pro
    firm, you are getting a great deal. Infrastructure,exchange fees,
    rent , employees and other costs are going up while commission
    rates are going down. A great deal for the trader.

    Gene Weissman
    Lieber & Weissman Sec., L.L.C.
  10. First off a rational response** to a "loaded" and irritating "jab" in the guise of a question. Second, I am irritated by your infantile inference that I am "dodging' you or anyone else on this board. Third, by implying that we are making money on this NYSE charge will now backfire like so many of the other silly attempts to find fault in our firm or any other reputable firm on the board.

    **SLK has undercharged our traders for several years for NYSE fees (due to a computer glitch on their part). BT has "absorbed" those charges and has not passed on anything to the traders. The error was found and the charge is being passed through since we comply with all regualtions and pay all of our fees in an upfront and straighforward manner (as opposed to "hiding" them as others do, or piece mealing ecn fees and other costs.

    We did our best to be sure that all of our traders were made aware of the charges, and showed them the proper way to reduce their trading costs. We always have the best interests of our traders in mind.

    To Gene: Good response, and I look forward to seeing you in NYC during the Expo period!
    #10     Jan 24, 2002