Why Did Bright Close It's Dallas Office?

bighitter1 · Jul 31, 2006

i'm sitting here in amazement that cash of bright trading can honestly charge someone .007 per share trading remote. big traders at hold assent and echo are at .0025 or less with paid offices. WHY HAVE I NEVER SEEN A BRIGHT TRADER POSTING ON THE P@L BOARD? DON I CHALLANGE YOU TO CALL A HOLD BROTHERS OFFICE AND SAY YOUR DOING 2-3 MIL A MONTH VOL AND I WANT .0025 AND HUGE LEVERAGE. THEY'LL GIVE IT TO YOU IN A SEC. SO QUIT ACTING LIKE .004 IS COMPETITIVE FOR 1 MILLION PLUS AS IT'S NOT

5Pillars · Jul 31, 2006

Quote from ozarka:

Also, professional traders tend to gravitate towards where the jobs are because that's often where they start out and learn the business. They may start out trading equities at a hedge fund in Dallas or as a stockbroker in the area. You are more likely to get a better group of candidates who already have some industry experience and are licensed in the Dallas area.

There are more trading firms, hedge funds, mutual funds and financial firms in Dallas than there are in Austin. It might be because of the "equities of Dallas" stereotype or it could be because many people grow up here and reinvest in the city.

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Now this is where Dallas has an edge............but Austin is the perfect size city imo (not too big) and the lakes that run through town going west are very nice. Dallas was just to big for me and the commute everywhere was a pain in the @$$ (almost as bad as Houston).
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ozarka · Jul 31, 2006

Quote from 5Pillars:

Quote from ozarka:

Also, professional traders tend to gravitate towards where the jobs are because that's often where they start out and learn the business. They may start out trading equities at a hedge fund in Dallas or as a stockbroker in the area. You are more likely to get a better group of candidates who already have some industry experience and are licensed in the Dallas area.

There are more trading firms, hedge funds, mutual funds and financial firms in Dallas than there are in Austin. It might be because of the "equities of Dallas" stereotype or it could be because many people grow up here and reinvest in the city.

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Now this is where Dallas has an edge............but Austin is the perfect size city imo (not too big) and the lakes that run through town going west are very nice. Dallas was just to big for me and the commute everywhere was a pain in the @$$ (almost as bad as Houston).
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Don't get me wrong, Austin is a much better city for the average person to live in. It's a nicer looking city with a great atmosphere, with lots to do. Just like there are nicer cities to live in than NY and Chicago.

I just think that if you are a trader or work in the financial industry, you will be better off in Dallas over Austin from a career standpoint because all the firms are here. This creates a constant stream of candidates and turnover from all these firms that a prop shop could get access to. People hate to relocate. You become attached to your city through friends, associates, family and just the overall history of the town.

Honestly there are much better places to live versus Austin or Dallas if you are looking for lakes, etc. And I don't know if that would justify a business venture.

If you are genuinely looking to open up a prop shop, you need to be confident that you will have a good source of traders from the existing job market in your area and you want to be in an area where there isn't much competition as well and Dallas is perfect for that.

I think you would have better luck pulling from a larger pool of industry professionals. Having a prop in Chicago and NY makes sense for the same reasons. The only problem is there is a lot of competition in both areas now.

So if you look south to Texas and think, "how can I capitalize on that region" you first should look to see where all the firms are again. There is a reason why there are so many hedge funds, mutual funds, trading firms, and large financial offices in Dallas. And that reason is because everyone else is here! I know that sounds like a silly reason to put up a firm but it's why it happened in NY and why it happens in Chicago.

Dallas is a large city. You don't have to put the office right in down town. You could put it slightly outside the city if traffic is a big issue. Fort Worth is about 15 minutes away from Dallas and doesn't have nearly as much traffic as Dallas. And there is a lot of money in Fort Worth as well near the South Lake area. Ross Perot owns a lot of the land out there. Maybe you can work out a deal with him?

Let him trade in your shop in exchange for some land maybe. That should bring in some spectators to watch.
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sub0 · Jul 31, 2006

Quote from ozarka:

That's an excellent point. Let me add, if you truly enjoy trading and intend on being great at it, there is no greater feeling than being around others who share your passion.

You read books on it, you pour over news and information on it, over time it's almost all you know or can think to talk about. So when someone comes up to you and says did you catch American Idol last night or some other pop culture show, you might be thinking, no I was reviewing some economic news.

So there you are wanting to talk about the economic news and how it relates to trading and they want to talk about American Idol!

Being around traders, even the worst traders on the planet, who at least have a passion for it, is still a great feeling. Just to know there are others out there that would get what you are saying, maybe even question you a bit and challenge your thinking on a few issues. That is a huge plus of working in a office. I could just imagine the trading stories that go around at those get togethers at bars after work. I have a few that I could tell as I'm sure you have a few you could tell too.

Most people would never get them. They'd think what are you talking about? Level 2?

That's why this message board is so popular. What you have to ask yourself though, is if you are working with a select group of traders and are exchanging ideas, don't you think they are more likely to share more sensitive information with a smaller group than with a bunch of people they don't know on the internet?

You are just going to get much more info, more ideas and more synergy.

Sure working remote could work if you are anti-social and would rather work in your underwear and like talking to yourself.

Let me just say that there is something great about being long a position when someone else is short that exact same position and hearing why they are short and them hearing why you are long that really expands your perspective.

Everyone would also agree that there is always someone out there who has more experience trading and is more knowledgable than you in certain areas. You would be a fool to not think that. If you can get access to a great group, like you stated floor traders, you are basically guaranteed to pick up a few things it would take you years to pick up on your own through experience and trial and error. It's just not the same.

I don't think it even compares. I have even said in the past, I don't think anyone should trade who's never worked in the financial industry because they don't know enough. Some people would scoff at this comment but I personally feel that anyone who's worked in this industry, especially as a floor trader, has a huge edge over those who never have.

And you sure as hell aren't going to find all that great information in books or on message boards. But I guarantee you may get a few gems from them over a few drinks in a private conversation!
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I agree. Maybe a night out after a long trading day at the office at the nearby Hooters? That's probably the only time a group of traders wouldn't be talking about trading though!!!

volente_00 · Jul 31, 2006

Quote from Maverick74:

Office managers manage risk, not the traders. Traders are completely independent. The leverage is a function of being a member of an exchange and getting haircut relief. No one is actually borrowing you money. There is no backer. So no, there is no one to answer to who is putting up money. Volente, you really seem to have very little knowledge of the prop environment. Perhaps you should spend some more time researching the topic before you spend any more time on here pontificating about it. Just a suggestion.
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That is your opinion, but I prefer to be at home and not have to report to a babysitter at the office.

sub0 · Jul 31, 2006

Quote from cashonly:

Shhhh!!!! My wife might be reading this thread!

Cash
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LOL

ozarka · Jul 31, 2006

Quote from Don Bright:

OK, again it seems we need some clarification. Back in the 1990's, it cost quite a lot of money to have proper broadband connections for our traders...as much as $20K or more per month. As time went on, and broadband became available at home, more traders stayed at home. We had around 40 locations at one point. When the leases came due, we simply asked the traders if they wanted to keep the office or simply trade remotely...most chose remote.

We went from less than 25 remotes to a couple of hundred...and it's still our biggest growth segment.

We've kept the offices where the traders wanted to keep them open, and gracefully closed when the leases were up a the others....not a big deal...others have been doing the same.

PS: We have affiliated offices, and would be glad to listen to any business plan that makes sense!!

All the best,
Don
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What would it take for Bright Trading to open a prop shop in Dallas?

Mike01 · Jul 31, 2006

I'm an institutional trader in Dallas and would be interested in trading out of a prop shop office in Dallas if anyone has any suggestions.

I'd rather work in an office because of the added discipline of being in an office over the distractions that would occur at home.

I haven't read this entire thread, is there a Bright shop, Hold Brothers, Echo, Assent or anything similar in the area? I don't want to relocate so it would have to be in the Dallas area.

Thanks for any information.

Bullet · Jul 31, 2006

Quote from bighitter1:

i'm sitting here in amazement that cash of bright trading can honestly charge someone .007 per share trading remote. big traders at hold assent and echo are at .0025 or less with paid offices. WHY HAVE I NEVER SEEN A BRIGHT TRADER POSTING ON THE P@L BOARD? DON I CHALLANGE YOU TO CALL A HOLD BROTHERS OFFICE AND SAY YOUR DOING 2-3 MIL A MONTH VOL AND I WANT .0025 AND HUGE LEVERAGE. THEY'LL GIVE IT TO YOU IN A SEC. SO QUIT ACTING LIKE .004 IS COMPETITIVE FOR 1 MILLION PLUS AS IT'S NOT
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I would love to hear cash or Don respond to this......

Bullet · Jul 31, 2006

Quote from Bsulli:

None of those offices are open anymore. I don't believe there are any prop shops left in Dallas.

Traffic is still bad. It is somewhat better since construction on the high five finished. If someone wants to fight traffic then I all for that, personally I don't have a desire to fight it.

If folks really want to open shop then Bright would be a professional group to be associated with.
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I believe there is one shop left....But I will not recommend it (thus I wont mention it). You are better off hooking up with traders over the phone or IM