PDT Rule & Prop Firms

Discussion in 'Prop Firms' started by tito, Mar 10, 2008.

  1. EricP

    EricP

    90% of prop traders may not survive retail, but the issue would not be commissions, fees or platforms, IMO. The issue would be leverage for most of them. In fact, if leverage were not an issue, I think most traders would be much better off trading retail and not prop.
     
    #41     Mar 13, 2008
  2. im thinking Canada.
     
    #42     Mar 13, 2008
  3. gimp570

    gimp570


    SO you dont think that the SEC is going to go after the registered B/D prop firms...?
     
    #43     Mar 13, 2008
  4. I can't really comment on that because its really on a case by case basis. The only isssue is this, I was told directly from the SEC that deposits are a no no and if there is a deposit, it is to be treated as a customer/client relationship.
     
    #44     Mar 13, 2008
  5. paden

    paden

    Forcing many to go to futures trading for the leverage, which will be their next target
     
    #45     Mar 13, 2008
  6. Agassi

    Agassi

    Some other LLC is offering the following deal:

    5000 down i.e. capital contribution.

    and 85% pay out

    Firm also takes the both the profits and losses up to 15%

    They are doing this to circumvent the Reg T, I guess...

    Would this work out? OR is this still a risk?
     
    #46     Mar 13, 2008
  7. No, this still won't work, as they are doing business still as a broker dealer w/o being registered. Without being registered you can't even collect commish.

    Although I do wonder this...Maybe someone has the answer. What if an LLC, opened a retail account didn't charge beyond the base rate with no capital BUT split the profits 50 50....
    Any thoughts?
     
    #47     Mar 13, 2008
  8. does canada have this bullshit to contend with?
     
    #48     Mar 13, 2008
  9. I don't know...Time will tell.
     
    #49     Mar 13, 2008
  10. Do Canada or the UK have the same onerous regulations on prop
    trading as does the US?
     
    #50     Mar 13, 2008