Bright Trading's new payout model

[rwk]

Quote from Red_Ink_inc:
You do realize you're replying to a guy who thinks it's a good idea to make big directional bets before earnings announcements and FOMC decisions?

Actually, I didn't know that ... my bad.

 

[CQNC]

so what.

Quote from Red_Ink_inc:

You do realize you're replying to a guy who thinks it's a good idea to make big directional bets before earnings annoucements and FOMC decisions?

 

[MohdSalleh]

Quote from Red_Ink_inc:

You do realize you're replying to a guy who thinks it's a good idea to make big directional bets before earnings annoucements and FOMC decisions?

He is Ben Bernanke?:eek:

 

[nbates]

..first $25k for PDT and now this, don't ya' love how we all are being "protected", lol...and yes, protected is a "four letter word" in the Trader Dictionary

 

[get even TT]

If a trader has outside accounts, he needs to have those statements automatically sent to his sponsored firm.
Now, most guys with 20K at one of these prop firms are not going to be able to manipulate any markets with this amt., so it's kind of crazy that this is a requirement. Maybe if you have 100K or up but not 20K or less.

 

[cactus_trader]

Quote from Don Bright:

Yeah, we've had a lot of money with Merrill for 20 years, and they have been "courting" us for a long time - but (dare I say it) - when we addressed this, they were very evasive about the question since they are "BofA, Merrill" and have other issues.

Once again, if it boils down to something as simple as joining CBSX or using Merrill to level the playing field at some point, so be it.

How is Vtrader dealing with this? Are you guys self clearing (I forgot, sorry).

Don

Don, with so many pair traders at your firm and all the overnight paired postions you guys carry, what clearing firms would you consider? since several clearing firms do not offer the overnight leverage GSEC and Merrill can offer.

 

[Don Bright]

Quote from CQNC:

so in your opinions, would going with your own CBSX firm, clearing through GS would be the smartest route at the moment, given the change in the weather?

and what would the minimum capitalisation be preferable to be considered a "reputable" firm?

Jury is still out on your first note, and we are accepting younger traders who qualify with as little as $10K.

Don

 

[Don Bright]

Quote from get even TT:

If a trader has outside accounts, he needs to have those statements automatically sent to his sponsored firm.
Now, most guys with 20K at one of these prop firms are not going to be able to manipulate any markets with this amt., so it's kind of crazy that this is a requirement. Maybe if you have 100K or up but not 20K or less.

Actually the concern is form the other direction...the so called "Trust Fund Baby" potential. If you grandparents left you $5million, but only a small allowance could be taken, but they let you handle the stock positions...one "could" trade obscure stocks and move them to a prop account for cash.

Don

 

[Don Bright]

Quote from cactus_trader:

Don, with so many pair traders at your firm and all the overnight paired postions you guys carry, what clearing firms would you consider? since several clearing firms do not offer the overnight leverage GSEC and Merrill can offer.

We rarely need use the Clearing firm's "leverage" - we stay pretty much even.

We need good back office and short stock lists primarily. We have tried other Firm's - but never left SLK/GS - but, as I said previously, we are always exploring our options.

Don

 

[Maverick74]

Quote from Don Bright:

Actually the concern is form the other direction...the so called "Trust Fund Baby" potential. If you grandparents left you $5million, but only a small allowance could be taken, but they let you handle the stock positions...one "could" trade obscure stocks and move them to a prop account for cash.

Don

Actually that is not the concern. Don you should walk over to your compliance dept and get to know them a little better. LOL. The issue is AML policy which I know your firm must enforce strictly as we do as well.

The issue is with having the ability to launder money from one account to another or possibly even launder the money out of the country without a trace. In fact there was recently a case where exactly this was done through two FCM's where over 7 figures was transferred from an account in the US to Russia.