Misc. Fees at Prop firms?

[Don Bright]

Originally posted by speculator69



Don, I actually prefer a firm with low rates and ECN rebates--I do a lot of bidding and offereing. Bright doesn't offer ECN rebates. And do you still charge $900/month overhead if a trader wants his own computer?

A firm with the latest hardware and beneficially unique trading software is also critical. Don't buy into the "technology doesn't matter" spiel. That is only promulgated by firms that can't compete on technology. This is purely anecdotal but in my experience a 100 millisecond speed advantage over the course of a year can be equivalent to saving 1/4+ cent per share if you do a lot of scalping.

July 5 Wall Street Journal:
SEC Halts Market-Data Programs...
It seems that after Swift Trade got busted trying to automate for Isld liquidity rebates, that the SEC stepped in and is now stopping it all. Of all things the NASD says that it doesn't like the fact that the Cincy Exchange (black box) was charging lower rates to the ECN'S and allowing for rebate sharing of data feed payments.

Read the whole story...pretty interesting.

Don

 

[GHJ]

That WSJ article refers to eliminating data revenue sharing plans. It has nothing to do with standard ECN liquidity rebates.

And what about my previous post? Seems you overlooked it.

 

[Don Bright]

Originally posted by GHJ


You've alledged many times that the trading platform is a "small part" of trading and now, after some critical comments by others, you say that Bright has the best technology out there. Am I the only one that sees through this? What makes REDI+ the "best technology" and why should technology matter if you yourself claim it doesn't??? Like you said, "All we can do is: 'buy, sell, or cancel'" Right?

All of my comments still stand. The best parallel I can make is that all the software is very similar, like Indy cars, and it is the driver who makes the difference. Skill will win over differences in software every time. I have said many times that I will put my best traders on an old "dos based" Force machine with manual keyboard entry against any trader out there, with full confidence.

Sorry if I missed a chance to reply, you know I'm pretty shy on the boards...



Don

 

[nitro]

Originally posted by Don Bright


All of my comments still stand. The best parallel I can make is that all the software is very similar, like Indy cars, and it is the driver who makes the difference. Skill will win over differences in software every time. I have said many times that I will put my best traders on an old "dos based" Force machine with manual keyboard entry against any trader out there, with full confidence.

Sorry if I missed a chance to reply, you know I'm pretty shy on the boards...



Don

This is better than watching Winbledon...

Don, nice clean shot accross the net...

nitro

 

[mike s]

Originally posted by Don Bright


All of my comments still stand. The best parallel I can make is that all the software is very similar, like Indy cars, and it is the driver who makes the difference. Skill will win over differences in software every time. I have said many times that I will put my best traders on an old "dos based" Force machine with manual keyboard entry against any trader out there, with full confidence.

Sorry if I missed a chance to reply, you know I'm pretty shy on the boards...



Don

Would you put 'em on the ol' dos based machine without the squawk box?

I've visited some Bright offices and noticed some severe lags in the quotes. I don't know if it was the rediplus or the feed but when I asked one trader how he traded with that he shrugged and pointed at the squawk box.

 

[Bryan Roberts]

Originally posted by mike s


Would you put 'em on the ol' dos based machine without the squawk box?

I've visited some Bright offices and noticed some severe lags in the quotes. I don't know if it was the rediplus or the feed but when I asked one trader how he traded with that he shrugged and pointed at the squawk box.

to be fair to bright it is probably the lag that comes with the satellite feed and not the equipment. i think there is a minimum half second delay with all satellite feeds. their quotes on redi should be accurate unless there is a "fast" market.

 

[mike s]

Originally posted by Bryan Roberts



to be fair to bright it is probably the lag that comes with the satellite feed and not the equipment. i think there is a minimum half second delay with all satellite feeds. their quotes on redi should be accurate unless there is a "fast" market.

The "feed" was my guess. At times it would be a few seconds behind....during spikes....not what I would call the really jammin' fast markets. Personally, I prefer my DSL line.

 

[Don Bright]

Since we use T-1 in most offices, and use Redi for qutoes (directly connected to SIAC, so we don't have "middlemen" vendor delays), I think were ok.

And now you want a good trader to give up the squawk box...maybe I should just blindfold him as well.....come on guys, I think we beat this to death. Use whatver toys you like, and we'll do the same, and our traders are making money, and I hope you do as well.

Don

 

[GHJ]

Originally posted by Don Bright


All of my comments still stand. The best parallel I can make is that all the software is very similar, like Indy cars...
Don

Don,

Thanks for ignoring my questions.

On another note, the T-1 version of Hyperfeed has probably the least "middleman" delay of any data source out there--25 milliseconds or so--i.e. negligible. That's because they are a tier one vendor with the best connectivity to SIAC and Nasdaq in the business. Although their satellite feed (used in many Bright offices) is absolutely awful (slow and unreliable).

 

[mike s]

Originally posted by Don Bright
Since we use T-1 in most offices, and use Redi for qutoes (directly connected to SIAC, so we don't have "middlemen" vendor delays), I think were ok.

And now you want a good trader to give up the squawk box...maybe I should just blindfold him as well.....come on guys, I think we beat this to death. Use whatver toys you like, and we'll do the same, and our traders are making money, and I hope you do as well.

Don

No, no...don't get me wrong. Keep 'em on a satellite feed...fine by me.

It was a technology comparison discussion and I stated a factual observation I had made when checking out some of your facilities.

Thanks for the well wishes.