Bright Trading

Don Bright · Dec 4, 2003

Quote from nyjets101:

Don,

Any truth in the rumor that Bright Trading still offers 1 month conversions?
Inquiring minds want to know..

Most of our conversions run from 1 month to 6 month in length. We have also recently allotted $100 Million for Corporate Stock purchases that we can allocate to traders on a per day basis.

We call this our "SAS" or Stock Allocation System, which is web based and very simple and user friendly. These stock allocations cost $1.50 per hundred with no SEC fees.

I said I would let you guys know when the time was right...no fan fare...just good business.

Don

wercurna · Dec 4, 2003

Quote from Don Bright:

We call this our "SAS" or Stock Allocation System, which is web based and very simple and user friendly. These stock allocations cost $1.50 per hundred with no SEC fees.

I said I would let you guys know when the time was right...no fan fare...just good business.

Don

Don,

Can you explain more about this SAS system?

thanks,

Don Bright · Dec 5, 2003

Quote from wercurna:

Don,

Can you explain more about this SAS system?

thanks,

This is internal at this point. But basically we "allocate" stock as needed on a per day basis, via a web based system.

Don

bro59 · Dec 6, 2003

Visited Bright's offices during the Expo.

Must say the digs were pretty nice. Good orientation for new traders, and the free food didn't suck either (thank's for the free sandwich guys). Although I'm a professional trader, I'm convinced Bright isn't "the place to be." Maybe that's just because I'm already happily ensconced elsewhere, because my overall impression of the firm is pretty positive. I think a new trader could do a heck of a lot worse than going to Bright.

Nice to see the Bright Boyz "in the flesh" finally (and a fair bit there was to see, he he), and to meet Baron too. Good show and thanks again for the food.

ener555 · Dec 6, 2003

I was wondering if any other company still allows the use of conversions as Bright does. My company said to me that the SEC rule includes conversion and are therefore not permitted. I don't know if ther are different types of conversions. The one I have is where you buy the Put sell the Call and own the underlying stock. I have it until march 2004 but have to get rid of it now. Is there still a grey area? Don would not admit still using them if they would be illegal??
Thanks!

thetraderprofit · Dec 6, 2003

My law firm conversed with SEC and they are taking the position that if your intent is to get around the uptick rule , you are in violation.

ener555 · Dec 6, 2003

Same here. That is why I don't understand that Bright is still using them? He must have a different interpretation of the SEC rule.

GATrader · Dec 6, 2003

firms might try to turn SEC letter into a grey area again by perhaps putting on conversion on a diff strike. Might work up until an audit wherien the SEC will say why do you have this shit on.. and there would no other answer than " I need to beat the uptick rule" and the SEC will say have a FINE day. As in $1000 per incident....Thin ice here folks !

Mecro · Dec 6, 2003

Quote from GATrader:

firms might try to turn SEC letter into a grey area again by perhaps putting on conversion on a diff strike. Might work up until an audit wherien the SEC will say why do you have this shit on.. and there would no other answer than " I need to beat the uptick rule" and the SEC will say have a FINE day. As in $1000 per incident....Thin ice here folks !

I agree,

Using conversions is just asking for it.

axehawk · Dec 6, 2003

Quote from ener555:

Same here. That is why I don't understand that Bright is still using them? He must have a different interpretation of the SEC rule.

I don't think Bright is still using actual conversions. I believe mentioned something about "allotting stock". My guess is (and its only a guess) is the wealthier Bright brother (Bob) has purchased 5000 - 10,000 share blocks of the most popular traded stocks at Bright (company wide). They then allot Bright traders long stock of their choice on an intraday basis (for a fee of course) so they can sell stock on a downtick, thus getting around the uptick rule. I also assume Bob has hedged himself indirectly (probably S&P puts).

Don will probably not come onto this site and describe the details because he doesn't want the SEC breathing down their neck, but he does want to hint to everyone that they may have found a loophole so he can attract more traders.

Again, this is just my guess.

Axe