PDT Rule & Prop Firms

nyxtrader · Mar 14, 2008

Quote from 5Pillars:

This should not affect you in anyway right? You have at license and at least 25K with Assent don't you? Just curious how stringent everything is getting now with the Tuco garbage.

I HAD much more than that up with Assent. BUt I have decided to close my account and stick with futures.

The SEC is going to be making an example out of a few people.

5Pillars · Mar 14, 2008

Wow that is sad to hear - wished all you prop traders were not having to deal with this big mess now as the market is ROCKIN!

Agassi · Mar 14, 2008

That means even legitimate firms like Bright and Echo would be affected right?

Would love to hear from Don Bright...

I know for a fact that some of their traders who do OO or Pairs need lots of leverage..

So this could mean the end of Opening Only and Pairs Trading..unless some one gets hired by Goldman or Morgan or starts a Hedge Fund.

Any thoughts?

Agassi · Mar 14, 2008

Can All the Prop Traders get together and sue the SEC for some class action lawsuit?

or just write a petition to SEC??

Don Bright · Mar 14, 2008

Quote from Agassi:

That means even legitimate firms like Bright and Echo would be affected right?

Would love to hear from Don Bright...

I know for a fact that some of their traders who do OO or Pairs need lots of leverage..

So this could mean the end of Opening Only and Pairs Trading..unless some one gets hired by Goldman or Morgan or starts a Hedge Fund.

Any thoughts?

No changes, no affect. If something changes, and we need to adapt for some reason, we will.

Don

ratboy88 · Mar 14, 2008

Quote from nyxtrader:

You are correct. If you have a deposit up, that deposit will be looked at as a retail account no leverage can be extended beyond 4 to 1. This rule is set by the Federal Reserve and they must comply.

and the fed reserve are private international bankers that hate this country..... and we put up with it. unreal.

5Pillars · Mar 14, 2008

This REALLY SUCKS! I was all excited about going prop to diversify my trading and then the rug gets pulled out.

Well I guess it is time to start a fund then - next best way to add additional leverage with OPM.

ratboy88 · Mar 14, 2008

Quote from Agassi:

Can All the Prop Traders get together and sue the SEC for some class action lawsuit?

or just write a petition to SEC??

the fed reserve sets the margin level req's. we need to expose all the sec agents and the judges that make and enforce these suppressive rules that ruin our industry.

Agassi · Mar 14, 2008

If a beginner wants to learn to drive a car, he or she would buy a car for say $5000...knowing that there is an 80% chance of a "major accident" in the first 3 years.

Imagine the government (SEC) having a new law that says all new drivers should only purchase a brand new car for $40K and not any used car for 5K!!!!!!!

We want to protect you. So for that reason we only want you to learn to drive in a Mercedez Benz or Volvo or a BMW with will cost a minimum of $40,000. We are doing this to protect you the driver since old cars may not have all the necessary safety features.

Am I the only one who feels this way? or every one feels this way?

client#9 · Mar 14, 2008

Quote from 5Pillars:

This REALLY SUCKS! I was all excited about going prop to diversify my trading and then the rug gets pulled out.

Well I guess it is time to start a fund then - next best way to add additional leverage with OPM.

Absolutely! You can set it up as an llc, use Bear Stearns as your broker, get it insured with Ambak, and get Carlysle Group to invest with you. If anything goes wrong, call Mr Bernake.