Bright Trading's new payout model

Maverick74 · Jul 29, 2010

Quote from jnorty:

Maverick the biggest trader with his own money in all the usa trades threw a firm that clears penson. they are set up as a hedge fund and have 300-400 traders.theres not an equal to him on the planet as far as a manual trader goes. so if him and his 400 traders find penson just fine i don't see why anyone would have to clear gs.anyone doing high vol is a fool using bright as its costing them $100's of thousands a year in commish.

I didn't understand a word in your post. Who clears Penson?

bigb · Jul 29, 2010

Quote from The Bishop:

Who's the 20% go to? Bright? Goldman? If it is to Bright, why does Goldman care what the payout is?

He said it goes to Bright. So this entire argument doesnt make any sense or is flawed. If the 20% goes to Bright, then wouldn't Bright simply pass it on to the traders? What is Goldman going to tell Bright, "no, you have to keep the money for yourselves! It's the only way we will do business with you!" There's got to be more to the story. Don needs to come on here and clarify.

Maverick74 · Jul 29, 2010

Quote from bigb:

He said it goes to Bright. So this entire argument doesnt make any sense or is flawed. If the 20% goes to Bright, then wouldn't Bright simply pass it on to the traders? What is Goldman going to tell Bright, "no, you have to keep the money for yourselves! It's the only way we will do business with you!" There's got to be more to the story. Don needs to come on here and clarify.

Guys look, there is no controversy here. Don has already PMed me. I know what the deal is. The fact of the matter is, Don got away with this for years. Our firm never did 100% payouts specifically for this reason. We did it because under the eyes of the SEC it looks like your class b partners are customers and you can't have customers in a JBO.

The 20% goes to Bright and no he can't give it back to you. What would be the point to that? GS has defined what a professional relationship is in their JBO and it's 80/20. They could have said 50/50. No one has to be a member of their JBO. They are not holding a gun to Don's head.

But just to clarify, Don did send me a PM about this a week or so ago when I brought it to his attention. He confirmed it. End of story.

nbates · Jul 29, 2010

I hope Goldman set the rule that no JBO Member, can payout "less than 80%", ...and haha lol there right

Maverick74 · Jul 29, 2010

And btw, I don't think Don is purposely avoiding this issue or this thread. He is (or was) on a cruise in Scandinavia. I'm sure his inbox is getting flooded though as I write this. Sorry Don.

listedguru · Jul 29, 2010

Quote from Maverick74:

Bright Trading is going to have to give up the 100% payout model. All firms clearing Goldman have to. At most they can give the trader 80% of their profits.

Well this sucks. Whats next? Saying regular retail guys (PDT traders) can only keep 80% of their profits?

-Guru

lwlee · Jul 30, 2010

How does this affect Echotrade? Who do they clear through? I was thinking of joining them.

Maverick74 · Jul 30, 2010

Quote from lwlee:

How does this affect Echotrade? Who do they clear through? I was thinking of joining them.

Echo clears Merrill. No issues there.

noob_trad3r · Jul 30, 2010

So what is the purpose of joining a prop firm?

I get 100% Payouts with etrade pro minus the little commission which is nothing really.

Vs giving some firm 20% of my earnings.

I see no purpose for joining a prop firm.

MohdSalleh · Jul 30, 2010

Quote from noob_trad3r:

So what is the purpose of joining a prop firm?

I get 100% Payouts with etrade pro minus the little commission which is nothing really.

Vs giving some firm 20% of my earnings.

I see no purpose for joining a prop firm.

LEVERAGE