PDT Rule & Prop Firms

[hedgefund07]

Everyone who thinks the SEC shut down Tuco should read this:

http://www.tflinc.com/media/Supplemental_Order_TRO.pdf

It clearly states that: Tuco is restrained from activities "not in the ordinary course of business"

Thats means Tuco could have operated as "business as usual".

Penson denied a margin call wire and stopped trading in the account...not the SEC or the judge.

Its amazing how few of the facts people know and still post conclusions.

 

[ratboy88]

Quote from hedgefund07:

....A licensed rep owning a trading LLC is a HUGE no-no. Anyone who has a series 7 knows this.....

yes... right up there with charles manson on the scale of evil.

doesn't bob bright have a series 7? sorry, i don't get it.

 

[hedgefund07]

This case revolves around Doug and the specific actions he did through owning Tuco, not prop firms in general. This is from the Finra website which oversees the SEC:

http://www.finra.org/InvestorInformation/InvestorProtection/ProhibitedConduct/index.htm

Number 8 on the list of prohibited conduct is: Private securities transactions between a broker and a customer that may violate NASD rules, particularly where such transactions are done without the knowledge and permission of the sales representative's firm.

As a licensed rep for GLB, he didn't open accounts in the GLB BD, only in his own Tuco LLC.

This is like a broker from Merrill Lynch opening an account for someone, but instead of opening the account at Merrill, they put the money in an account that they own!!

Again, thats a huge no no!

Quote from ratboy88:

yes... right up there with charles manson on the scale of evil.

doesn't bob bright have a series 7? sorry, i don't get it.

 

[ratboy88]

Quote from hedgefund07:


Number 8 on the list of prohibited conduct is: Private securities transactions between a broker and a customer that may violate NASD rules, particularly where such transactions are done without the knowledge and permission of the sales representative's firm.

well i'm sure you know more about this than i do. so GLB had no idea he ran a firm called Tuco? nor did they give their permission?

 

[nyxtrader]

Quote from hedgefund07:

Everyone who thinks the SEC shut down Tuco should read this:

http://www.tflinc.com/media/Supplemental_Order_TRO.pdf

It clearly states that: Tuco is restrained from activities "not in the ordinary course of business"

Thats means Tuco could have operated as "business as usual".

Penson denied a margin call wire and stopped trading in the account...not the SEC or the judge.

Its amazing how few of the facts people know and still post conclusions.

No totally operate as business as normal, doesn't it say below that, in no event a trader can withdrawl more than 50% of the net capital? Is that what you call business as normal?

As far as facts, there are many problems with this suit. Whether you are licenesed or not and you are acting as a BD this is clearly breaking laws and so forth. There is no way around it. Dont believe me and if it turns out I am wrong..I am sorry ahead of time. But I am certain that I am correct as not only have I spoken with the SEC directly but i have talked to several attorneys that work in the industry and worked for the SEC. Part of the claim was denied, not all of it.

 

[client#9]

Quote from hedgefund07:

This case revolves around Doug and the specific actions he did through owning Tuco, not prop firms in general. This is from the Finra website which oversees the SEC:

http://www.finra.org/InvestorInformation/InvestorProtection/ProhibitedConduct/index.htm

Number 8 on the list of prohibited conduct is: Private securities transactions between a broker and a customer that may violate NASD rules, particularly where such transactions are done without the knowledge and permission of the sales representative's firm.

As a licensed rep for GLB, he didn't open accounts in the GLB BD, only in his own Tuco LLC.

This is like a broker from Merrill Lynch opening an account for someone, but instead of opening the account at Merrill, they put the money in an account that they own!!

Again, thats a huge no no!

It's a no no to open a brokerage account. The whole contention behind these llc's is that it is not a brokerage account. It just goes along with the other brokerage account pdt, etc. rules broken, .....if it is really a brokerage account.

 

[UDon'tKnowMe]

Have already heard of Assent and Lightspeed LLC's shutting down and of Genesis shutting down LLC's there too. I don't see any chance of Tuco beating the SEC in court on this issue. It looks like others don't either and the LLC's and BD's they execute thru would rather shut them down ahead of time instead of waiting for the government to come after them for disgorgement of their profits over the life of the LLC and for fines. Unfortunately I predict in about a week or two we will all either have to have a PDT retail account of our own or have a series 7 and be registered at a BD.

 

[galvanicsniper]

anyone know how this is going to affect Canadian prop firms?

 

[Joab]

Quote from Agassi:

the SEC is telling is this:

we want to protect you the people

we don't want you to loose just 5000

instead we want you to loose more; 30,000

EXACTLY

This makes absolutely no sense at all.

What's next ?

Sorry your not allowed in a Casino unless we do a credit check on you and you get a licence :eek:

It's for your own protection

What the fuck is happening to America ?

I would expect this shit from Canada, Germany or England but the land of democracy ?

 

[Joab]

Quote from 5Pillars:

For Dubai trading - http://www.dubaiptg.com/

I don't know that this would help.

The SEC has authority over everyone trades on it's exchanges, no matter were you reside.

It's there house and they set the rules.

Can anyone confirm my assumptions or could traders in another country get away with 20:1 margin ???