Dark storm cloud brewing on payout rules

M

Maverick74

I had a meeting yesterday with someone here in Chicago and talked about the state of the JBO business. I am hearing that this year we are going to get strict enforcement of the payout rules. I've even heard the number 50% thrown around. Firms cannot and will not be allowed to give 100% payouts and the ceiling will most likely be 80% and could be as low as 50%. There will be no gimmicks or games allowed. There will be STRICT enforcement of this policy. It's getting a lot of discussion here. I just wanted to put this out there. I do not have any "inside" info regarding this so please don't ask. I'm just reporting what I am hearing.
 
I heard this too. There is enough talk about this out there. its been out for a while. From what I hear its as good as done. and with it, so is the prop business in the US. I myself am just moving offshore. The prop biz is alive and well over the high seas.

I thought this was just for equities shops, will this be enforced by nfa cftc as well?
 
I'm not too worried. These idiots will regulate their way out of a job soon. They do some stupid 50/50 split & traders take their money overseas and they lose their precious licensing exam fees and their transaction taxes.
 
Quote from EvOTrAdEr:

I'm not too worried. These idiots will regulate their way out of a job soon. They do some stupid 50/50 split & traders take their money overseas and they lose their precious licensing exam fees and their transaction taxes.
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Nobody is going overseas to trade. Put that fantasy away now.
 
If the max payout CBSX firms are allowed drops from 99% to 80%, then it seems to me that the commish structure would have to be adjusted accordingly. Otherwise, the model would become unviable for too many traders.
 
Quote from Maverick74:

Nobody is going overseas to trade. Put that fantasy away now.
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why not? A nice beach/laptop setup somewhere on the mediterranean coast. sounds nice.
 
Quote from EvOTrAdEr:

why not? A nice beach/laptop setup somewhere on the mediterranean coast. sounds nice.
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This has been discussed at length on here. People are not going to just leave their families and friends. A few guys will, but most won't.
 
If the payout is reduced from 100% to 80%. Couldn't the loss sharing ratio also be lowered from 100% to 80% and all would be the same more or less from the traders point of view?
 
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