Back in the early 90's I decided to get into trading forex and ended up borrowing 5k from my mother and trading at a place called Korbean International Investments. It ended up being a classic bucket shop, taking the other sides of everyones trades, assuming most would lose, while the owner was siphoning off most of the money to Korea. One day the federal marshalls popped in and shut the place down. I never got my money back, although I've repaid my mom back many times over. Anyway, so I was young and stupid, but I learned my lesson, and it only cost me 5k. There were clues that something shady was going on, but I ignored them. The moral is, if it seems shaky, it probably is.
So someone correct me if I am wrong. By guidelines a trader (without 7) would have to contribute 25k with 4:1 intraday/2:1 overnight. Now with traders that are licensed does this still apply 4:1 intraday and 2:1 overnight? Just trying to get a correct and clear understanding of the legal leverage for prop and customer traders. Thanks
S 7 is not the determining factor. The exchanges may require that indvidual tradrs at a member firm be licensed. The member firm and the exchange have there own margin guidlines that the SEC does not regulate. A trader who has 25K can trade at 4 to 1 without a S 7. At this point in time a trader can join an LLC that is not a member of an exchange, a B/D or a owned by any registered principals. The SEC may pass new regulation making current operating structures illegal. but for the time being they have ther hands full.They seemed just as eager as Tuco to settle. Not to mention there budget is for shit (Thank God For Republicans)
I went through the documentation. I am trying to figure out where this leaves T3 Capital and its traders. Any thoughts or news?
What will the effect of the Tuco outcome be on a company like Chimera, which I am pretty sure is under Assent?
Who knows, I am with a Sub-LLC off of assent and I will not mention what one but I must say Assent is very very strict with traders having all the correct documentation, background check, fingerprints, compliance, etc. I very highly doubt Assent is at fault with anything, As far as their Sub-LLC's I can also see Assent is very strict with them as well and the one I work for being all the traders are either licensed or in the process of getting licensed being sponsored right now no one is panicking. I think this whole tuco thing is a black cloud that will be passing over. Why would the sec want to waste their time going prop shop to prop shop when our economy is getting ready for a great depression
well look at it.... look at what you said,... you are all getting licensed. the SEC settled quickly with Tuco... i.e. they didn't have to go to court and test the law. the law is faulty... it doesn't apply. what they want is everyone to be licensed.. then everyone comes under their jurisdiction. they make an example of one and the others all get scared and panic. maybe a few don't.. and the SEC goes after them. trust me they are not done... their bosses have an agenda and it is not about looking out for the public good.